
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC3363]

 
                      TITLE 15--COMMERCE AND TRADE
 
                     CHAPTER 60--NATURAL GAS POLICY
 
         SUBCHAPTER III--ADDITIONAL AUTHORITIES AND REQUIREMENTS
 
                       Part A--Emergency Authority
 
Sec. 3363. Emergency allocation authority


(a) In general

    In order to assist in meeting natural gas requirements for high-
priority uses of natural gas during any natural gas supply emergency 
declared under section 3361 of this title, the President may, by order, 
allocate supplies of natural gas under subsections (b), (c), and (d) of 
this section to--
        (1) any interstate pipeline;
        (2) any local distribution company--
            (A) which is served by any interstate pipeline;
            (B) which is providing natural gas only for high-priority 
        uses; and
            (C) which is in need of deliveries of natural gas to assist 
        in meeting natural gas requirements for high-priority uses of 
        natural gas; and

        (3) any person for meeting requirements of high-priority uses of 
    natural gas.

(b) Allocation of certain boiler fuel gas

                        (1) Required finding

        The President shall not allocate supplies of natural gas under 
    this subsection unless he finds that--
            (A) to the maximum extent practicable, emergency purchase 
        authority under section 3362 of this title has been utilized to 
        assist in meeting natural gas requirements for high-priority 
        uses of natural gas;
            (B) emergency purchases of natural gas supplies under 
        section 3362 of this title are not likely to satisfy the natural 
        gas requirements for such high-priority uses;
            (C) the exercise of authority under this subsection is 
        reasonably necessary to assist in meeting natural gas 
        requirements for such high-priority uses; and
            (D) any interstate pipeline or local distribution company 
        receiving such natural gas has ordered the termination of all 
        deliveries of natural gas for other than high-priority uses and 
        attempted to to \1\ the maximum extent practicable to terminate 
        such deliveries.
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    \1\ So in original.
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                      (2) Allocation authority

        Subject to paragraph (1), in order to assist in meeting natural 
    gas requirements for high-priority uses of natural gas, the 
    President may, by order, allocate supplies of natural gas the use of 
    which has been prohibited by the President pursuant to authority 
    under section 717z of this title (relating to the use of natural gas 
    as a boiler fuel during any natural gas supply emergency).

(c) Allocation of general pipeline supply

                        (1) Required findings

        The President shall not allocate supplies of natural gas under 
    this subsection unless he finds that--
            (A) to the maximum extent practicable, allocation of 
        supplies of natural gas under subsection (b) of this section has 
        been utilized to assist in meeting natural gas requirements for 
        high-priority uses of natural gas;
            (B) the exercise of such authority is not likely to satisfy 
        the natural gas requirements for such high-priority uses;
            (C) the exercise of authority under this subsection is 
        reasonably necessary to assist in meeting natural gas 
        requirements for such high-priority uses;
            (D) any interstate pipeline or local distribution company 
        receiving such natural gas has ordered the termination of all 
        deliveries of natural gas for other than high-priority uses and 
        attempted to the maximum extent practicable to terminate such 
        deliveries;
            (E) such allocation will not create, for the interstate 
        pipeline delivering certificated natural gas, a supply shortage 
        which will cause such pipeline to be unable to meet the natural 
        gas requirements for high-priority uses of natural gas served, 
        directly or indirectly, by such pipeline; and
            (F) such allocation will not result in a disproportionate 
        share of deliveries and resulting curtailments of natural gas 
        being experienced by such interstate pipeline when compared to 
        deliveries and resulting curtailments which are experienced as a 
        result of orders issued under this subsection applicable to 
        other interstate pipelines (as determined by the President).

                (2) Required notification from State

        (A) \2\ Notification
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    \2\ So in original. Par. (2) enacted without a subpar. (B).
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            The President shall not allocate supplies of natural gas 
        under this subsection unless he is notified by the Governor of 
        any State that--
                (i) a shortage of natural gas supplies available to such 
            State exists or is imminent;
                (ii) such shortage or imminent shortage endangers the 
            supply of natural gas for high-priority uses in such State; 
            and
                (iii) the exercise of authority under State law is 
            inadequate to protect high-priority uses of natural gas in 
            such State from an interruption in natural gas supplies.

                        (3) Basis of finding

        To the maximum extent practicable, the Governor shall submit, 
    together with any notification under subparagraph (A), information 
    upon which he has based his finding under such subparagraph, 
    including--
            (i) volumes of natural gas required to meet the natural gas 
        requirements for high-priority uses of natural gas in such 
        State;
            (ii) information received from persons in the business of 
        producing, selling, transporting, or delivering natural gas in 
        such State as to the volumes of natural gas supplies available 
        to such State;
            (iii) information on the authority under State law which 
        will be exercised to protect high-priority uses; and
            (iv) such other information which the President requests or 
        which the Governor determines appropriate to apprise the 
        President of emergency deliveries and transportation of 
        interstate natural gas needed by such State.

                      (4) Allocation authority

        Subject to paragraphs (1), (2), and (5), in order to assist in 
    meeting natural gas requirements for high-priority uses of natural 
    gas, the President may, by order, allocate supplies of certificated 
    natural gas from any interstate pipeline.

         (5) Consideration of alternative fuel availability

        In issuing any order under this subsection the President shall 
    consider the relative availability of alternative fuel to natural 
    gas users supplied by the interstate pipeline ordered to make 
    deliveries pursuant to this subsection.

(d) Allocation of user-owned gas

                        (1) Required finding

        The President shall not allocate supplies of natural gas under 
    this subsection unless he finds that--
            (A) to the maximum extent practicable, allocation of 
        supplies of natural gas under subsection (c) of this section has 
        been utilized to assist in meeting natural gas requirements for 
        high-priority uses of natural gas;
            (B) the exercise of such authority is not likely to satisfy 
        the natural gas requirements for such high-priority uses;
            (C) the exercise of authority under this subsection is 
        reasonably necessary to assist in meeting natural gas 
        requirements for such high-priority uses;
            (D) any interstate pipeline or local distribution company 
        receiving such natural gas has ordered the termination of all 
        deliveries of natural gas for other than high-priority uses and 
        attempted to the maximum extent practicable to terminate such 
        deliveries; and
            (E) such allocation will not create, for the person who owns 
        and would otherwise use such natural gas, a supply shortage 
        which will cause such person to be unable to satisfy such 
        person's natural gas requirements for high-priority uses.

                      (2) Allocation authority

        Subject to paragraphs (1) and (3), in order to assist in meeting 
    natural gas requirements for high-priority uses of natural gas, the 
    President may, by order, allocate supplies of natural gas which 
    would be certificated natural gas but for the second sentence of 
    section 3301(19) of this title.

      (3) Consideration of economic feasibility of alternative 
                                    fuels

        In issuing any order under this subsection, the President shall 
    consider the economic feasibility of alternative fuels available to 
    the user which owned the natural gas subject to an order under this 
    subsection.

(e) Limitation

    No order may be issued under this section unless the President 
determines that such order will not require transportation of natural 
gas by any pipeline in excess of its available transportation capacity.

(f) Industry assistance

    The President may request that representatives of pipelines, local 
distribution companies, and other persons meet and provide assistance to 
the President in carrying out his authority under this section.

(g) Compensation

                           (1) In general

        If the parties to any order issued under subsection (b), (c), 
    (d), or (h) of this section fail to agree upon the terms of 
    compensation for natural gas deliveries or transportation required 
    pursuant to such order, the President, after a hearing held either 
    before or after such order takes effect, shall, by supplemental 
    order, prescribe the amount of compensation to be paid for such 
    deliveries or transportation and for any other expenses incurred in 
    delivering or transporting natural gas.

      (2) Calculation of compensation for certain boiler fuel 
                                 natural gas

        For purposes of any supplemental order under paragraph (1) with 
    respect to emergency deliveries pursuant to subsection (b) of this 
    section, the President shall calculate the amount of compensation--
            (A) for supplies of natural gas based upon the amount 
        required to make whole the user subject to the prohibition 
        order, but in no event may such compensation exceed just 
        compensation prescribed in section 717z of this title; and
            (B) for transportation, storage, delivery, and other 
        services, based upon reasonable costs, as determined by the 
        President.

          (3) Compensation for other natural gas allocated

        For the purpose of any supplemental order under paragraph (1), 
    if the party making emergency deliveries pursuant to subsection (c) 
    or (d) of this section--
            (A) indicates a preference for compensation in kind, the 
        President shall direct that compensation in kind be provided as 
        expeditiously as practicable;
            (B) indicates a preference for compensation, or the 
        President determines that, notwithstanding paragraph (A) of this 
        subsection, any portion thereof cannot practicably be 
        compensated in kind, the President shall calculate the amount of 
        compensation--
                (i) for supplies of natural gas, based upon the amount 
            required to make the pipeline and its local distribution 
            companies whole, in the case of any order under subsection 
            (c) of this section, or to make the user from whom natural 
            gas is allocated whole, in the case of any order under 
            subsection (d) of this section including any amount actually 
            paid by such pipeline and its local distribution companies 
            or such user for volumes of natural gas or higher cost 
            synthetic gas acquired to replace natural gas subject to an 
            order under subsection (c) or (d) of this section; and
                (ii) for transportation, storage, delivery, and other 
            services, based upon reasonable costs, as determined by the 
            President. Compensation received by an interstate pipeline 
            under this subsection shall be credited to the account of 
            any local distribution company served by that pipeline to 
            the extent ordered by the President to make such local 
            distribution company whole.

(h) Related transportation and facilities

    The President may, by order, require any pipeline to transport 
natural gas, and to construct and operate such facilities for the 
transportation of natural gas, as he determines necessary to carry out 
any order under subsection (b), (c), or (d) of this section. 
Compensation for the costs of any construction or transportation ordered 
under this subsection shall be determined under subsection (g) of this 
section and shall be paid by the person to whom supplies of natural gas 
are ordered allocated under this section.

(i) Monitoring

    In order to effect the purposes of this part, the President shall 
monitor the operation of any order made pursuant to this section to 
assure that natural gas delivered pursuant to this section is applied to 
high-priority uses only.

(j) Commission study

    Not later than June 1, 1979, the Commission shall prepare and submit 
to the Congress a report regarding whether authority to allocate natural 
gas, which is not otherwise subject to allocation under this part, is 
likely to be necessary to meet high-priority uses.

(k) ``High-priority use'' defined

    For purposes of this section, the term ``high-priority use'' means 
any--
        (1) use of natural gas in a residence;
        (2) use of natural gas in a commercial establishment in amounts 
    less than 50 Mcf on a peak day; or
        (3) any use of natural gas the curtailment of which the 
    President determines would endanger life, health, or maintenance of 
    physical property.

(Pub. L. 95-621, title III, Sec. 303, Nov. 9, 1978, 92 Stat. 3383.)

                  Section Referred to in Other Sections

    This section is referred to in sections 717z, 3361, 3364, 3373, 
3374, 3412, 3414, 3416, 3431, 3432 of this title.
