Title 15 — Commerce and TradeRelease 119-73

§720c Pipeline expansion

Title 15 › Chapter CHAPTER 15D— - ALASKA NATURAL GAS PIPELINE › § 720c

Last updated Apr 6, 2026|Official source

Summary

The Commission can order the Alaska natural gas transportation project to expand if someone asks and, after notice and a hearing, the Commission decides the expansion is needed now and in the future. Before it orders an expansion, the Commission must set rates that recover the expansion costs and allow a reasonable return; make sure existing shippers do not subsidize new shippers; ensure the new shipper will follow the project’s tariff; find the new facilities will not harm the project’s finances, operations, or existing shippers’ contracted capacity; complete required environmental reviews; and confirm adequate downstream delivery capacity. The order is void unless the requester signs a firm transportation agreement in the time the order specifies. This does not change the Commission’s authority over pipelines outside the State, and the Commission may make rules needed to carry out these steps.

Full Legal Text

Title 15, §720c

Commerce and Trade — Source: USLM XML via OLRC

(a)With respect to any Alaska natural gas transportation project, on a request by 1 or more persons and after giving notice and an opportunity for a hearing, the Commission may order the expansion of the Alaska natural gas project if the Commission determines that such an expansion is required by the present and future public convenience and necessity.

(b)Before ordering an expansion under subsection (a), the Commission shall—

(1)approve or establish rates for the expansion service that are designed to ensure the recovery, on an incremental or rolled-in basis, of the cost associated with the expansion (including a reasonable rate of return on investment);

(2)ensure that the rates do not require existing shippers on the Alaska natural gas transportation project to subsidize expansion shippers;

(3)find that a proposed shipper will comply with, and the proposed expansion and the expansion of service will be undertaken and implemented based on, terms and conditions consistent with the tariff of the Alaska natural gas transportation project in effect as of the date of the expansion;

(4)find that the proposed facilities will not adversely affect the financial or economic viability of the Alaska natural gas transportation project;

(5)find that the proposed facilities will not adversely affect the overall operations of the Alaska natural gas transportation project;

(6)find that the proposed facilities will not diminish the contract rights of existing shippers to previously subscribed certificated capacity;

(7)ensure that all necessary environmental reviews have been completed; and

(8)find that adequate downstream facilities exist or are expected to exist to deliver incremental Alaska natural gas to market.

(c)Any order of the Commission issued in accordance with this section shall be void unless the person requesting the order executes a firm transportation agreement with the Alaska natural gas transportation project within such reasonable period of time as the order may specify.

(d)Nothing in this section expands or otherwise affects any authority of the Commission with respect to any natural gas pipeline located outside the State.

(e)The Commission may issue such regulations as are necessary to carry out this section.

Reference

Citations & Metadata

Citation

15 U.S.C. § 720c

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73