Title 15, Commerce and TradeRelease 119-110

§720c Pipeline Expansion

Title 15 › CHAPTER 15D — ALASKA NATURAL GAS PIPELINE › § 720c

Last updated Sep 22, 2026|Official source

Summary

The Commission may order an expansion of the Alaska natural gas transportation project when one or more people ask for it, after giving notice, holding a hearing, and finding the expansion is needed for present and future public convenience and necessity. Before it orders expansion, the Commission must set rates that will cover the expansion costs (and allow a reasonable return) and make sure existing shippers do not subsidize new shippers. The Commission must also require the expansion to follow the project’s current tariff, find the new facilities won’t hurt the project’s finances, operations, or existing contracts, complete environmental reviews, and confirm downstream delivery facilities exist or are expected. Any order is void unless the requester signs a firm transportation agreement within the time the order allows. The section does not change the Commission’s power over pipelines outside Alaska, and the Commission may make rules to carry out these steps.

Full Legal Text

Title 15, §720c

Commerce and Trade, Source: USLM XML via OLRC

(a)Authority

With respect to any Alaska natural gas transportation project, on a request by 1 or more persons and after giving notice and an opportunity for a hearing, the Commission may order the expansion of the Alaska natural gas project if the Commission determines that such an expansion is required by the present and future public convenience and necessity.

(b)Responsibilities of Commission

Before ordering an expansion under subsection (a), the Commission shall—

(1)approve or establish rates for the expansion service that are designed to ensure the recovery, on an incremental or rolled-in basis, of the cost associated with the expansion (including a reasonable rate of return on investment);

(2)ensure that the rates do not require existing shippers on the Alaska natural gas transportation project to subsidize expansion shippers;

(3)find that a proposed shipper will comply with, and the proposed expansion and the expansion of service will be undertaken and implemented based on, terms and conditions consistent with the tariff of the Alaska natural gas transportation project in effect as of the date of the expansion;

(4)find that the proposed facilities will not adversely affect the financial or economic viability of the Alaska natural gas transportation project;

(5)find that the proposed facilities will not adversely affect the overall operations of the Alaska natural gas transportation project;

(6)find that the proposed facilities will not diminish the contract rights of existing shippers to previously subscribed certificated capacity;

(7)ensure that all necessary environmental reviews have been completed; and

(8)find that adequate downstream facilities exist or are expected to exist to deliver incremental Alaska natural gas to market.

(c)Requirement for a firm transportation agreement

Any order of the Commission issued in accordance with this section shall be void unless the person requesting the order executes a firm transportation agreement with the Alaska natural gas transportation project within such reasonable period of time as the order may specify.

(d)Limitation

Nothing in this section expands or otherwise affects any authority of the Commission with respect to any natural gas pipeline located outside the State.

(e)Regulations

The Commission may issue such regulations as are necessary to carry out this section.

Reference

Citations & Metadata

Citation

15 U.S.C. § 720c

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110