Title 15Commerce and TradeRelease 119-73not60

§3374 Clauses Prohibiting Certain Sales, Transportation, and Commingling

Title 15 › Chapter 60— NATURAL GAS POLICY › Subchapter III— ADDITIONAL AUTHORITIES AND REQUIREMENTS › Part B— Other Authorities and Requirements › § 3374

Last updated Apr 3, 2026|Official source

Summary

Makes certain terms in a first-sale natural gas contract invalid and not allowed. A contract cannot stop the gas from being mixed with gas that the Federal Energy Regulatory Commission (the Commission) controls under the Natural Gas Act. A contract cannot bar selling or moving the gas to or by people who are under the Commission’s authority, or otherwise block sale or transport across state lines. A contract cannot end or let a party end its duties just because the gas was mixed, sold, or moved in those ways. The words “natural gas covered by this chapter” mean: (1) gas not committed to interstate commerce as of November 8, 1978; (2) gas whose sale in interstate commerce is allowed under section 3362(a) or 3371(b), or by an assignment under section 3372(a); or (3) gas whose interstate transportation is under an order in section 3362(c) or 3363(b), (c), (d), or (h), or is authorized by the Commission under section 3371(a).

Full Legal Text

Title 15, §3374

Commerce and Trade — Source: USLM XML via OLRC

(a)Any provision of any contract for the first sale of natural gas is hereby declared against public policy and unenforceable with respect to any natural gas covered by this chapter if such provision—
(1)prohibits the commingling of natural gas subject to such contract with natural gas subject to the jurisdiction of the Commission under the provisions of the Natural Gas Act [15 U.S.C. 717 et seq.];
(2)prohibits the sale of any natural gas subject to such contract to, or transportation of any such natural gas by, any person subject to the jurisdiction of the Commission under the Natural Gas Act [15 U.S.C. 717 et seq.], or otherwise prohibits the sale or transportation in interstate commerce (within the meaning of the Natural Gas Act) of natural gas subject to such contract; or
(3)terminates, or grants any party the option to terminate, any obligation under any such contract as a result of such commingling, sale, or transportation.
(b)For purposes of subsection (a), the term “natural gas covered by this chapter” means—
(1)natural gas which is not committed or dedicated to interstate commerce as of November 8, 1978;
(2)natural gas, the sale in interstate commerce of which—
(A)is authorized under section 3362(a) or 3371(b) of this title; or
(B)is pursuant to an assignment under section 3372(a) of this title; and,
(3)natural gas, the transportation in interstate commerce of which is—
(A)pursuant to any order under section 3362(c) or section 3363(b), (c), (d), or (h) of this title; or
(B)authorized by the Commission under section 3371(a) of this title.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Natural Gas Act, referred to in subsec. (a)(1), (2), 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.

Reference

Citations & Metadata

Citation

15 U.S.C. § 3374

Title 15Commerce and Trade

Last Updated

Apr 3, 2026

Release point: 119-73not60