Title 43 — Public LandsRelease 119-73

§1862 Natural gas distribution

Title 43 › Chapter CHAPTER 36— - OUTER CONTINENTAL SHELF RESOURCE MANAGEMENT › Subchapter SUBCHAPTER III— - MISCELLANEOUS PROVISIONS › § 1862

Last updated Apr 6, 2026|Official source

Summary

Encourages local gas companies to buy and develop natural gas leases on the Outer Continental Shelf by making it easier to move gas they own from the lease to their service area. The Federal Energy Regulatory Commission (FERC) must write and publish a policy in the Federal Register after allowing written and spoken comments. The policy will explain how FERC will decide applications for certificates under section 717f of title 15 to transport such gas. “Local distribution company” means a retail natural gas distributor (including a subsidiary or affiliate that explores or produces gas) that is regulated or run as a public utility by a state or local government. “Interstate commerce” has the meaning in section 717a(7) of title 15. “Commission” means the Federal Energy Regulatory Commission.

Full Legal Text

Title 43, §1862

Public Lands — Source: USLM XML via OLRC

(a)The purpose of this section is to encourage expanded participation by local distribution companies in acquisition of leases and development of natural gas resources on the Outer Continental Shelf by facilitating the transportation in interstate commerce of natural gas, which is produced from a lease located on the Outer Continental Shelf and owned, in whole or in part, by a local distribution company, from such lease to the service area of such local distribution company.

(b)The Federal Energy Regulatory Commission shall, after opportunity for presentation of written and oral views, promulgate and publish in the Federal Register a statement of Commission policy which carries out the purpose of this section and sets forth the standards under which the Commission will consider applications for, and, as appropriate, issue certificates of public convenience and necessity, pursuant to section 717f of title 15, for the transportation in interstate commerce of natural gas, which is produced from a lease located on the Outer Continental Shelf and owned, in whole or in part, by a local distribution company, from such lease to the service area of such local distribution company. Such statement of policy shall specify the criteria, limitations, or requirements the Commission will apply in determing— 11 So in original. Probably should be “determining—”.

(1)whether the application of any local distribution company qualifies for consideration under the statement of policy; and

(2)whether the public convenience and necessity will be served by the issuance of the requested certificate of transportation.

(c)For purposes of this section, the term—

(1)“local distribution company” means any person—

(A)engaged in the distribution of natural gas at retail, including any subsidiary or affiliate thereof engaged in the exploration and production of natural gas; and

(B)regulated, or operated as a public utility, by a State or local government or agency thereof;

(2)“interstate commerce” shall have the same meaning as such term has under section 717a(7) of title 15; and

(3)“Commission” means the Federal Energy Regulatory Commission.

Reference

Citations & Metadata

Citation

43 U.S.C. § 1862

Title 43 — Public Lands

Last Updated

Apr 6, 2026

Release point: 119-73