PRIA, Government Policy, Made Personal

Summary

A federal commission can make rules that let a pipeline that works only inside one state give, for no pay, some or all of its right to take extra natural gas at the first sale. The commission can set the conditions for those transfers. The law points to section 3431 for how this works with the Natural Gas Act. Surplus natural gas means gas that the state regulator says is more than the pipeline currently needs.

Title 15, §3372

Commerce and Trade, Source: USLM XML via OLRC

(a)Authorization of assignments

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)Effect of authorization under subsection (a)

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)Surplus natural gas

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