§3301 Definitions

Summary

Defines the words used in rules about natural gas production, transport, sales, and pipelines. Natural gas, either alone or mixed with manufactured gas. Well, any hole drilled to find or produce natural gas, crude oil, or both. New well, a well whose surface drilling began on or after February 19, 1977, or whose depth was increased by drilling on or after that date to a completion at least 1,000 feet deeper than its deepest pre‑February 19, 1977 completion. Old well, any well that is not a new well. Marker well, a well that produced gas commercially after January 1, 1970 and before April 20, 1977 (with limited exceptions for some new wells). Reservoir, an underground pool of gas or oil trapped by rock or other barriers so it behaves as a single pressure system. Completion location, the underground spot where gas has been or is being produced commercially (for marker wells, limited to the 1970–1977 period). Proration unit, the part of a reservoir that one well will drain as designated by regulators or by local unit agreements. New lease and old lease, for the Outer Continental Shelf: new leases began on or after April 20, 1977; old leases are the rest. New contract, any first‑sale contract made on or after November 9, 1978; rollover contract and successor to an existing contract, special kinds of contracts tied to existing contracts in effect around November 8–9, 1978. Interstate pipeline, a gas transporter under the Federal Energy Regulatory Commission’s jurisdiction; intrastate pipeline, a gas transporter not under that jurisdiction (except certain narrow exclusions). Local distribution company, a non‑pipeline company that moves and sells gas to end users. Committed to interstate commerce, generally gas from the Outer Continental Shelf or gas required by contract or certificate to be sold across state lines, but it excludes certain limited, emergency, or pre‑November 9, 1978 abandonment situations and gas affected by specific May 31, 1978 conditions. Certificated natural gas, gas moved by an interstate pipeline in a facility with a section 7(c) certificate (with a narrow exclusion for producer sales to users unless used to generate electricity). Sale, any sale, exchange, or transfer for value. First sale, the initial sale of gas to pipelines, local distributors, users, or other sales the Commission treats as first sales to prevent price circumvention. Deliver, physical delivery from the seller for first sales, except transfers of title for sales of proven reserves in place. Certificate, a certificate of public convenience and necessity under the Natural Gas Act. Commission, the Federal Energy Regulatory Commission. Federal agency, as defined in section 105 of title 5. Person, includes the United States, any State, and their subdivisions and agencies. Affiliate, an entity that controls, is controlled by, or is under common control with another. Electric utility, any business that generates and sells electricity to the public. Mcf, 1,000 cubic feet of gas measured at 14.73 pounds per square inch (absolute) and 60 degrees Fahrenheit. Btu, British thermal unit. Month, a calendar month. Mile, a statute mile of 5,280 feet. United States, the several States and the Outer Continental Shelf. State, the several States and the District of Columbia. Outer Continental Shelf, as defined in 43 U.S.C. 1331(a). Prudhoe Bay Unit of Alaska, the area covered by the voluntary unit agreement approved June 2, 1977 and described as the “affected area” in Conservation Order No. 145 as it existed on June 1, 1977. Federal antitrust laws, the Sherman Act, the Clayton Act, the Federal Trade Commission Act, sections 73 and 74 of the Wilson Tariff Act, and the Act of June 19, 1936 (chapter 592).