§ 3431. — Coordination with the Natural Gas Act.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC3431]
TITLE 15--COMMERCE AND TRADE
CHAPTER 60--NATURAL GAS POLICY
SUBCHAPTER VI--COORDINATION WITH NATURAL GAS ACT; MISCELLANEOUS
PROVISIONS
Sec. 3431. Coordination with the Natural Gas Act
(a) Jurisdiction of the Commission under the Natural Gas Act
(1) Sales
(A) Application to first sales
For purposes of section 1(b) of the Natural Gas Act [15
U.S.C. 717(b)], the provisions of the Natural Gas Act [15 U.S.C.
717 et seq.], and the jurisdiction of the Commission under such
Act shall not apply to any natural gas solely by reason of any
first sale of such natural gas.
(B) Authorized sales or assignments
For purposes of section 1(b) of the Natural Gas Act [15
U.S.C. 717(b)], the provisions of the Natural Gas Act [15 U.S.C.
717 et seq.] and the jurisdiction of the Commission under such
Act shall not apply by reason of any sale of natural gas--
(i) authorized under section 3362(a) or 3371(b) of this
title; or
(ii) pursuant to any assigned authorized under section
3372(a) of this title.
(C) Natural-gas company
For purposes of the Natural Gas Act [15 U.S.C. 717 et seq.],
the term ``natural-gas company'' (as defined in section 2(6) of
such Act [15 U.S.C. 717a(6) et seq.]) shall not include any
person by reason of, or with respect to, any sale of natural gas
if the provisions of the Natural Gas Act and the jurisdiction of
the Commission do not apply to such sale solely by reason of
subparagraph (A) or (B) of this paragraph.
(2) Transportation
(A) Jurisdiction of the Commission
For purposes of section 1(b) of the Natural Gas Act [15
U.S.C. 717(b)] the provisions of such Act [15 U.S.C. 717 et
seq.] and the jurisdiction of the Commission under such Act
shall not apply to any transportation in interstate commerce of
natural gas if such transportation is--
(i) pursuant to any order under section 3362(c) or
section 3363(b), (c), (d), or (h) of this title; or
(ii) authorized by the Commission under section 3371(a)
of this title.
(B) Natural-gas company
For purposes of the Natural Gas Act [15 U.S.C. 717 et seq.],
the term ``natural-gas company'' (as defined in section 2(6) of
such Act [15 U.S.C. 717a(6)]) shall not include any person by
reason of, or with respect to, any transportation of natural gas
if the provisions of the Natural Gas Act and the jurisdiction of
the Commission under the Natural Gas Act do not apply to such
transportation by reason of subparagraph (A) of this paragraph.
(b) Charges deemed just and reasonable
(1) Sales
(A) First sales
Except as otherwise provided in this subsection, for
purposes of sections 4 and 5 of the Natural Gas Act, any amount
paid in any first sale of natural gas shall be deemed to be just
and reasonable.
(B) Emergency sales
For purposes of sections 4 and 5 of the Natural Gas Act [15
U.S.C. 717c, 717d], any amount paid in any sale authorized under
section 3362(a) of this title shall be deemed to be just and
reasonable if such amount does not exceed the fair and equitable
price established under such section and applicable to such
sale.
(C) Sales by intrastate pipelines
For purposes of sections 4 and 5 of the Natural Gas Act [15
U.S.C. 717c, 717d] any amount paid in any sale authorized by the
Commission under section 3371(b) of this title shall be deemed
to be just and reasonable if such amount does not exceed the
fair and equitable price established by the Commission and
applicable to such sale.
(D) Assignments
For purposes of sections 4 and 5 of the Natural Gas Act [15
U.S.C. 717c, 717d], any amount paid pursuant to the terms of any
contract with respect to that portion of which the Commission
has authorized an assignment authorized under section 3372(a) of
this title shall be deemed to be just and reasonable.
(E) Affiliated entities limitation
For purposes of paragraph (1), in the case of any first sale
between any interstate pipeline and any affiliate of such
pipeline, any amount paid in any first sale shall be deemed to
be just and reasonable if, in addition to satisfying the
requirements of such paragraph, such amount does not exceed the
amount paid in comparable first sales between persons not
affiliated with such interstate pipeline.
(2) Other charges
(A) Allocation
For purposes of sections 4 and 5 of the Natural Gas Act [15
U.S.C. 717c, 717d], any amount paid by any interstate pipeline
for transportation, storage, delivery or other services provided
pursuant to any order under section 3363(b), (c), or (d) of this
title shall be deemed to be just and reasonable if such amount
is prescribed by the President under section 3363(h)(1) of this
title.
(B) Transportation
For purposes of sections 4 and 5 of the Natural Gas Act [15
U.S.C. 717c, 717d], any amount paid by any interstate pipeline
for any transportation authorized by the Commission under
section 3371(a) of this title shall be deemed to be just and
reasonable if such amount does not exceed that approved by the
Commission under such section.
(c) Guaranteed passthrough
(1) Certificate may not be denied based upon price
The Commission may not deny, or condition the grant of, any
certificate under section 7 of the Natural Gas Act [15 U.S.C. 717f]
based upon the amount paid in any sale of natural gas, if such
amount is deemed to be just and reasonable under subsection (b) of
this section.
(2) Recovery of just and reasonable prices paid
For purposes of sections 4 and 5 of the Natural Gas Act [15
U.S.C. 717c, 717d], the Commission may not deny any interstate
pipeline recovery of any amount paid with respect to any purchase of
natural gas if, under subsection (b) of this section, such amount is
deemed to be just and reasonable for purposes of sections 4 and 5 of
such Act, except to the extent the Commission determines that the
amount paid was excessive due to fraud, abuse, or similar grounds.
(Pub. L. 95-621, title VI, Sec. 601, Nov. 9, 1978, 92 Stat. 3409; Pub.
L. 101-60, Sec. 3(a)(7), (b)(7), July 26, 1989, 103 Stat. 158, 159.)
References in Text
The Natural Gas Act, referred to in subsec. (a)(1), (2)(A), (B), is
act June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is
classified generally to chapter 15B (Sec. 717 et seq.) of this title.
For complete classification of this act to the Code, see section 717w of
this title and Tables.
Amendments
1989--Subsec. (a)(1)(A). Pub. L. 101-60, Sec. 3(b)(7)(A), in heading
substituted ``Application to first sales'' for ``Natural gas not
committed or dedicated'' and amended text generally. Prior to amendment,
text read as follows: ``For purposes of section 1(b) of the Natural Gas
Act, effective on the first day of the first month beginning after
November 9, 1978, the provisions of the Natural Gas Act and the
jurisdiction of the Commission under such Act shall not apply to natural
gas which was not committed or dedicated to interstate commerce as of
November 8, 1978, solely by reason of any first sale of such natural
gas.''
Subsec. (a)(1)(B). Pub. L. 101-60, Sec. 3(b)(7)(B), (C),
redesignated subpar. (C) as (B) and struck out former subpar. (B) which
related to committed or dedicated natural gas which was high-cost
natural gas, new natural gas, or natural gas produced from any new,
onshore production well.
Subsec. (a)(1)(C). Pub. L. 101-60, Sec. 3(b)(7)(C), (D),
redesignated subpar. (D) as (C) and substituted ``subparagraph (A) or
(B)'' for ``subparagraph (A), (B), or (C)''. Former subpar. (C)
redesignated (B).
Subsec. (a)(1)(D). Pub. L. 101-60, Sec. 3(b)(7)(C), redesignated
subpar. (D) as (C).
Subsec. (a)(1)(E). Pub. L. 101-60, Sec. 3(b)(7)(B), struck out
subpar. (E), ``Certain additional natural gas'', which read as follows:
``For purposes of section 1(b) of the Natural Gas Act, the provisions of
the Natural Gas Act and the jurisdiction of the Commission under such
Act shall not apply solely by reason of any first sale of natural gas
which is committed or dedicated to interstate commerce as of July 25,
1989, and which is not subject to a maximum lawful price under part A of
subchapter I of this chapter by reason of section 3331(f) of this title,
effective as of the date such gas ceases to be subject to such maximum
lawful price.''
Pub. L. 101-60, Sec. 3(a)(7)(A), substituted ``Certain additional
natural gas'' for ``Alaskan natural gas'' in heading and amended text
generally. Prior to amendment, text read as follows: ``Subparagraph
(B)(ii) and (iii) shall not apply with respect to natural gas produced
from the Prudhoe Bay unit of Alaska and transported through the
transportation system approved under the Alaska Natural Gas
Transportation Act of 1976.''
Subsec. (b)(1)(A). Pub. L. 101-60, Sec. 3(b)(7)(E), amended subpar.
(A) generally. Prior to amendment, subpar. (A) read as follows:
``Subject to paragraph (4), for purposes of sections 4 and 5 of the
Natural Gas Act, any amount paid in any first sale of natural gas shall
be deemed to be just and reasonable if--
``(i) such amount does not exceed the applicable maximum lawful
price established under subchapter I of this chapter; or
``(ii) there is no applicable maximum lawful price solely by
reason of the elimination of price controls pursuant to part B of
subchapter I of this chapter.''
Subsec. (b)(1)(D). Pub. L. 101-60, Sec. 3(b)(7)(F), struck out
before period at end ``if such amount does not exceed the applicable
maximum lawful price established under subchapter I of this chapter''.
Subsec. (c)(2). Pub. L. 101-60, Sec. 3(a)(7)(B), substituted
``purchase of natural gas if, under subsection (b) of this section, such
amount is deemed to be just and reasonable for purposes of sections 4
and 5 of such Act,'' for ``purchase of natural gas if--
``(A) under subsection (b) of this section, such amount is
deemed to be just and reasonable for purposes of sections 4 and 5 of
such Act, and
``(B) such recovery is not inconsistent with any requirement of
any rule under section 3341 of this title (including any amendment
under section 3342 of this title),''.
Effective Date of 1989 Amendment
Amendment by section 3(b)(7) of Pub. L. 101-60 effective Jan. 1,
1993, see section 3(b) of Pub. L. 101-60, set out as a note under
section 3372 of this title.
Section Referred to in Other Sections
This section is referred to in section 3372 of this title.
