§3431 — Title 15 Commerce and Trade | U.S. Code

Summary

Stops the Natural Gas Act and the Commission from applying to some sales and moves of natural gas. The Act and the Commission do not cover natural gas just because of any first sale. They also do not cover sales authorized under sections 3362(a) or 3371(b), assignments under section 3372(a), or transportation ordered under section 3362(c) or 3363(b), (c), (d), or (h), or transportation the Commission authorizes under section 3371(a). If the Act does not apply for those reasons, a person is not treated as a "natural-gas company" just because of those sales or transports. For the price rules in sections 4 and 5, amounts paid in those first sales or authorized sales count as fair and reasonable if they meet the limits set in the listed sections. That includes prices under section 3362(a), prices the Commission approves under section 3371(b), amounts from assigned contracts under 3372(a), and affiliate first-sales that do not exceed comparable non‑affiliate first-sale prices. Payments for transportation, storage, delivery, or other services under orders in 3363(b), (c), or (d) count as fair if the President sets them under 3363(h)(1). Payments for Commission‑authorized transportation under 3371(a) count as fair if they do not exceed what the Commission approved. The Commission cannot deny or condition a section 7 certificate or block a pipeline from recovering such amounts just because of the price, unless the Commission finds the price was excessive because of fraud, abuse, or similar reasons.

Title 15, §3431

Commerce and Trade — Source: USLM XML via OLRC

(a)(1)(A)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)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 11 So in original. Probably should be “assignment”. authorized under section 3372(a) of this title.

(C)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)(A)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)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)(1)(A)Except as otherwise provided in this subsection, for purposes of section 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)For purposes of section 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)For purposes of section 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)For purposes of section 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)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)(A)For purposes of section 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)For purposes of section 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)(1)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)For purposes of section 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 section 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.

Notes & Related Subsidiaries

Editorial Notes

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, 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. (a)(1)(A). Pub. L. 101–60, § 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, § 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, § 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, § 3(b)(7)(C), redesignated subpar. (D) as (C). Subsec. (a)(1)(E). Pub. L. 101–60, § 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, § 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, § 3(b)(7)(E), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “Subject to paragraph (4), for purposes of section 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, § 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, § 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 section 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 section 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),”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 AmendmentAmendment 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.

§3431 Coordination with the Natural Gas Act