§3372 — Title 15 Commerce and Trade | U.S. Code

Summary

The Commission can let a pipeline that only works inside one state transfer, for no payment, all or part of its right to get surplus natural gas at the first sale to a pipeline that crosses state lines or to a local gas company. The Commission sets the rules and conditions for any such transfer. How that transfer fits with other laws, including the Natural Gas Act, is explained in another part of this law. Surplus natural gas: gas that the state agency in charge of the intrastate pipeline says is more than the pipeline needs right now.

Title 15, §3372

Commerce and Trade — Source: USLM XML via OLRC

(a)The Commission may, by rule or order, authorize any intrastate pipeline to assign, without compensation, to any interstate pipeline or local distribution company all or any portion of such intrastate pipeline’s right to receive surplus natural gas at any first sale, upon such terms and conditions as the Commission determines appropriate.

(b)For the effect of an authorization under subsection (a), see section 3431 of this title (relating to the coordination of this chapter with the Natural Gas Act [15 U.S.C. 717 et seq.]).

(c)For purposes of this section, the term “surplus natural gas” means any natural gas which is determined, by the State agency having regulatory jurisdiction over the intrastate pipeline which would be entitled to receive such natural gas in the absence of any assignment to exceed the then current demands on such pipeline for natural gas.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Natural Gas Act, referred to in subsec. (b), is act June 21, 1938, ch. 556, 52 Stat. 821, which is classified generally to chapter 15B (§ 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. (c). Pub. L. 101–60 substituted “any natural gas” for “any natural gas— “(1) which is not committed or dedicated to interstate commerce on November 8, 1978; “(2) the first sale of which is subject to a maximum lawful price established under subchapter I of this chapter; and “(3)”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 Amendment section 3(b) of Pub. L. 101–60 provided in part that the amendment by section 3(b)(2) of Pub. L. 101–60 is effective Jan. 1, 1993.

§3372 Assignment of contractual rights to receive surplus natural gas