15 U.S.C. § 717t–2: Natural gas market…

Summary

The Federal Energy Regulatory Commission must make wholesale interstate natural gas markets more open about prices and availability. The Commission can write rules to share timely information on wholesale natural gas prices and availability with itself, state regulators, buyers, sellers, and the public. It can get data from any market participant and can let other groups collect and publish the data, while using existing price publishers and trade processors when possible. The Commission may build an electronic system only if current publishers do not give enough price discovery or transparency. The rules must protect information that would hurt market workings or system security if made public, and they must avoid releasing transaction-specific details in a way that could help collusion. Within 180 days of August 8, 2005, the Commission must make an agreement with the Commodity Futures Trading Commission to coordinate information requests and protect proprietary trading data. The rules cannot make pipeline access depend on reporting, and they do not force very small market participants to report. No civil penalty applies for violations older than 3 years before the notice of a proposed penalty, except for fraudulent market manipulation that materially affected a contract.

Title 15, §717t–2

Commerce and Trade, Source: USLM XML via OLRC

(a)In general

(1)The Commission is directed to facilitate price transparency in markets for the sale or transportation of physical natural gas in interstate commerce, having due regard for the public interest, the integrity of those markets, fair competition, and the protection of consumers.

(2)The Commission may prescribe such rules as the Commission determines necessary and appropriate to carry out the purposes of this section. The rules shall provide for the dissemination, on a timely basis, of information about the availability and prices of natural gas sold at wholesale and in interstate commerce to the Commission, State commissions, buyers and sellers of wholesale natural gas, and the public.

(3)The Commission may—

(A)obtain the information described in paragraph (2) from any market participant; and

(B)rely on entities other than the Commission to receive and make public the information, subject to the disclosure rules in subsection (b).

(4)In carrying out this section, the Commission shall consider the degree of price transparency provided by existing price publishers and providers of trade processing services, and shall rely on such publishers and services to the maximum extent possible. The Commission may establish an electronic information system if it determines that existing price publications are not adequately providing price discovery or market transparency.

(b)Information exempted from disclosure

(1)Rules described in subsection (a)(2), if adopted, shall exempt from disclosure information the Commission determines would, if disclosed, be detrimental to the operation of an effective market or jeopardize system security.

(2)In determining the information to be made available under this section and the time to make the information available, the Commission shall seek to ensure that consumers and competitive markets are protected from the adverse effects of potential collusion or other anticompetitive behaviors that can be facilitated by untimely public disclosure of transaction-specific information.

(c)Information sharing

(1)Within 180 days of August 8, 2005, the Commission shall conclude a memorandum of understanding with the Commodity Futures Trading Commission relating to information sharing, which shall include, among other things, provisions ensuring that information requests to markets within the respective jurisdiction of each agency are properly coordinated to minimize duplicative information requests, and provisions regarding the treatment of proprietary trading information.

(2)Nothing in this section may be construed to limit or affect the exclusive jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq.).

(d)Compliance with requirements

(1)The Commission shall not condition access to interstate pipeline transportation on the reporting requirements of this section.

(2)The Commission shall not require natural gas producers, processors, or users who have a de minimis market presence to comply with the reporting requirements of this section.

(e)Retroactive effect

(1)Except as provided in paragraph (2), no person shall be subject to any civil penalty under this section with respect to any violation occurring more than 3 years before the date on which the person is provided notice of the proposed penalty under section 717t–1(b) of this title.

(2)Paragraph (1) shall not apply in any case in which the Commission finds that a seller that has entered into a contract for the transportation or sale of natural gas subject to the jurisdiction of the Commission has engaged in fraudulent market manipulation activities materially affecting the contract in violation of section 717c–1 of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Commodity Exchange Act, referred to in subsec. (c)(2), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables.

Prior Provisions

A prior section 23 of act June 21, 1938, was renumbered section 25 and is classified to section 717v of this title.

§717t–2 Natural Gas Market Transparency Rules