§ 717f. — Construction, extension, or abandonment of facilities.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC717f]
TITLE 15--COMMERCE AND TRADE
CHAPTER 15B--NATURAL GAS
Sec. 717f. Construction, extension, or abandonment of facilities
(a) Extension or improvement of facilities on order of court; notice and
hearing
Whenever the Commission, after notice and opportunity for hearing,
finds such action necessary or desirable in the public interest, it may
by order direct a natural-gas company to extend or improve its
transportation facilities, to establish physical connection of its
transportation facilities with the facilities of, and sell natural gas
to, any person or municipality engaged or legally authorized to engage
in the local distribution of natural or artificial gas to the public,
and for such purpose to extend its transportation facilities to
communities immediately adjacent to such facilities or to territory
served by such natural-gas company, if the Commission finds that no
undue burden will be placed upon such natural-gas company thereby:
Provided, That the Commission shall have no authority to compel the
enlargement of transportation facilities for such purposes, or to compel
such natural-gas company to establish physical connection or sell
natural gas when to do so would impair its ability to render adequate
service to its customers.
(b) Abandonment of facilities or services; approval of Commission
No natural-gas company shall abandon all or any portion of its
facilities subject to the jurisdiction of the Commission, or any service
rendered by means of such facilities, without the permission and
approval of the Commission first had and obtained, after due hearing,
and a finding by the Commission that the available supply of natural gas
is depleted to the extent that the continuance of service is
unwarranted, or that the present or future public convenience or
necessity permit such abandonment.
(c) Certificate of public convenience and necessity
(1)(A) No natural-gas company or person which will be a natural-gas
company upon completion of any proposed construction or extension shall
engage in the transportation or sale of natural gas, subject to the
jurisdiction of the Commission, or undertake the construction or
extension of any facilities therefor, or acquire or operate any such
facilities or extensions thereof, unless there is in force with respect
to such natural-gas company a certificate of public convenience and
necessity issued by the Commission authorizing such acts or operations:
Provided, however, That if any such natural-gas company or predecessor
in interest was bona fide engaged in transportation or sale of natural
gas, subject to the jurisdiction of the Commission, on February 7, 1942,
over the route or routes or within the area for which application is
made and has so operated since that time, the Commission shall issue
such certificate without requiring further proof that public convenience
and necessity will be served by such operation, and without further
proceedings, if application for such certificate is made to the
Commission within ninety days after February 7, 1942. Pending the
determination of any such application, the continuance of such operation
shall be lawful.
(B) In all other cases the Commission shall set the matter for
hearing and shall give such reasonable notice of the hearing thereon to
all interested persons as in its judgment may be necessary under rules
and regulations to be prescribed by the Commission; and the application
shall be decided in accordance with the procedure provided in subsection
(e) of this section and such certificate shall be issued or denied
accordingly: Provided, however, That the Commission may issue a
temporary certificate in cases of emergency, to assure maintenance of
adequate service or to serve particular customers, without notice or
hearing, pending the determination of an application for a certificate,
and may by regulation exempt from the requirements of this section
temporary acts or operations for which the issuance of a certificate
will not be required in the public interest.
(2) The Commission may issue a certificate of public convenience and
necessity to a natural-gas company for the transportation in interstate
commerce of natural gas used by any person for one or more high-priority
uses, as defined, by rule, by the Commission, in the case of--
(A) natural gas sold by the producer to such person; and
(B) natural gas produced by such person.
(d) Application for certificate of public convenience and necessity
Application for certificates shall be made in writing to the
Commission, be verified under oath, and shall be in such form, contain
such information, and notice thereof shall be served upon such
interested parties and in such manner as the Commission shall, by
regulation, require.
(e) Granting of certificate of public convenience and necessity
Except in the cases governed by the provisos contained in subsection
(c)(1) of this section, a certificate shall be issued to any qualified
applicant therefor, authorizing the whole or any part of the operation,
sale, service, construction, extension, or acquisition covered by the
application, if it is found that the applicant is able and willing
properly to do the acts and to perform the service proposed and to
conform to the provisions of this chapter and the requirements, rules,
and regulations of the Commission thereunder, and that the proposed
service, sale, operation, construction, extension, or acquisition, to
the extent authorized by the certificate, is or will be required by the
present or future public convenience and necessity; otherwise such
application shall be denied. The Commission shall have the power to
attach to the issuance of the certificate and to the exercise of the
rights granted thereunder such reasonable terms and conditions as the
public convenience and necessity may require.
(f) Determination of service area; jurisdiction of transportation to
ultimate consumers
(1) The Commission, after a hearing had upon its own motion or upon
application, may determine the service area to which each authorization
under this section is to be limited. Within such service area as
determined by the Commission a natural-gas company may enlarge or extend
its facilities for the purpose of supplying increased market demands in
such service area without further authorization; and
(2) If the Commission has determined a service area pursuant to this
subsection, transportation to ultimate consumers in such service area by
the holder of such service area determination, even if across State
lines, shall be subject to the exclusive jurisdiction of the State
commission in the State in which the gas is consumed. This section shall
not apply to the transportation of natural gas to another natural gas
company.
(g) Certificate of public convenience and necessity for service of area
already being served
Nothing contained in this section shall be construed as a limitation
upon the power of the Commission to grant certificates of public
convenience and necessity for service of an area already being served by
another natural-gas company.
(h) Right of eminent domain for construction of pipelines, etc.
When any holder of a certificate of public convenience and necessity
cannot acquire by contract, or is unable to agree with the owner of
property to the compensation to be paid for, the necessary right-of-way
to construct, operate, and maintain a pipe line or pipe lines for the
transportation of natural gas, and the necessary land or other property,
in addition to right-of-way, for the location of compressor stations,
pressure apparatus, or other stations or equipment necessary to the
proper operation of such pipe line or pipe lines, it may acquire the
same by the exercise of the right of eminent domain in the district
court of the United States for the district in which such property may
be located, or in the State courts. The practice and procedure in any
action or proceeding for that purpose in the district court of the
United States shall conform as nearly as may be with the practice 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, Sec. 7, 52 Stat. 824; Feb. 7, 1942, ch. 49, 56
Stat. 83; July 25, 1947, ch. 333, 61 Stat. 459; Pub. L. 95-617, title
VI, Sec. 608, Nov. 9, 1978, 92 Stat. 3173; Pub. L. 100-474, Sec. 2, Oct.
6, 1988, 102 Stat. 2302.)
Amendments
1988--Subsec. (f). Pub. L. 100-474 designated existing provisions as
par. (1) and added par. (2).
1978--Subsec. (c). Pub. L. 95-617, Sec. 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, Sec. 608(b)(2), substituted
``subsection (c)(1)'' for ``subsection (c)''.
1947--Subsec. (h). Act July 25, 1947, added subsec. (h).
1942--Subsecs. (c) to (g). Act Feb. 7, 1942, struck out subsec. (c),
and added new subsecs. (c) to (g).
Effective Date of 1988 Amendment
Section 3 of Pub. L. 100-474 provided that: ``The provisions of this
Act [amending this section and enacting provisions set out as a note
under section 717w of this title] shall become effective one hundred and
twenty days after the date of enactment [Oct. 6, 1988].''
Transfer of Functions
Enforcement functions of Secretary or other official in Department
of Energy and Commission, Commissioners, or other official in Federal
Energy Regulatory Commission related to compliance with certificates of
public convenience and necessity issued under this section with respect
to pre-construction, construction, and initial operation of
transportation system for Canadian and Alaskan natural gas transferred
to Federal Inspector, Office of Federal Inspector for Alaska Natural Gas
Transportation System, until first anniversary of date of initial
operation of Alaska Natural Gas Transportation System, see Reorg. Plan
No. 1 of 1979, Secs. 102(d), 203(a), 44 F.R. 33663, 33666, 93 Stat.
1373, 1376, effective July 1, 1979, set out under section 719e of this
title. Office of Federal Inspector for the Alaska Natural Gas
Transportation System abolished and functions and authority vested in
Inspector transferred to Secretary of Energy by section 3012(b) of Pub.
L. 102-486, set out as an Abolition of Office of Federal Inspector note
under section 719e of this title.
Federal Power Commission terminated and functions with regard to
issuance of certificates of public convenience and necessity, including
abandonment of facilities or services, and establishment of physical
connections transferred to Federal Energy Regulatory Commission by
sections 7172(a)(1)(D) and 7293 of Title 42, The Public Health and
Welfare.
For transfer of functions of Federal Power Commission, with certain
reservations, to Chairman of such Commission, see Reorg. Plan No. 9 of
1950, Secs. 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, 3301, 3394, 3431 of
this title; title 42 sections 7172, 8235e, 8441; title 43 sections 1351,
1862; title 49 section 60104.
