
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC3431]

 
                      TITLE 15--COMMERCE AND TRADE
 
                     CHAPTER 60--NATURAL GAS POLICY
 
    SUBCHAPTER VI--COORDINATION WITH NATURAL GAS ACT; MISCELLANEOUS 
                               PROVISIONS
 
Sec. 3431. Coordination with the Natural Gas Act


(a) Jurisdiction of the Commission under the Natural Gas Act

                              (1) Sales

        (A) Application to first sales

            For purposes of section 1(b) of the Natural Gas Act [15 
        U.S.C. 717(b)], the provisions of the Natural Gas Act [15 U.S.C. 
        717 et seq.], and the jurisdiction of the Commission under such 
        Act shall not apply to any natural gas solely by reason of any 
        first sale of such natural gas.

        (B) Authorized sales or assignments

            For purposes of section 1(b) of the Natural Gas Act [15 
        U.S.C. 717(b)], the provisions of the Natural Gas Act [15 U.S.C. 
        717 et seq.] and the jurisdiction of the Commission under such 
        Act shall not apply by reason of any sale of natural gas--
                (i) authorized under section 3362(a) or 3371(b) of this 
            title; or
                (ii) pursuant to any assigned authorized under section 
            3372(a) of this title.

        (C) Natural-gas company

            For purposes of the Natural Gas Act [15 U.S.C. 717 et seq.], 
        the term ``natural-gas company'' (as defined in section 2(6) of 
        such Act [15 U.S.C. 717a(6) et seq.]) shall not include any 
        person by reason of, or with respect to, any sale of natural gas 
        if the provisions of the Natural Gas Act and the jurisdiction of 
        the Commission do not apply to such sale solely by reason of 
        subparagraph (A) or (B) of this paragraph.

                         (2) Transportation

        (A) Jurisdiction of the Commission

            For purposes of section 1(b) of the Natural Gas Act [15 
        U.S.C. 717(b)] the provisions of such Act [15 U.S.C. 717 et 
        seq.] and the jurisdiction of the Commission under such Act 
        shall not apply to any transportation in interstate commerce of 
        natural gas if such transportation is--
                (i) pursuant to any order under section 3362(c) or 
            section 3363(b), (c), (d), or (h) of this title; or
                (ii) authorized by the Commission under section 3371(a) 
            of this title.

        (B) Natural-gas company

            For purposes of the Natural Gas Act [15 U.S.C. 717 et seq.], 
        the term ``natural-gas company'' (as defined in section 2(6) of 
        such Act [15 U.S.C. 717a(6)]) shall not include any person by 
        reason of, or with respect to, any transportation of natural gas 
        if the provisions of the Natural Gas Act and the jurisdiction of 
        the Commission under the Natural Gas Act do not apply to such 
        transportation by reason of subparagraph (A) of this paragraph.

(b) Charges deemed just and reasonable

                              (1) Sales

        (A) First sales

            Except as otherwise provided in this subsection, for 
        purposes of sections 4 and 5 of the Natural Gas Act, any amount 
        paid in any first sale of natural gas shall be deemed to be just 
        and reasonable.

        (B) Emergency sales

            For purposes of sections 4 and 5 of the Natural Gas Act [15 
        U.S.C. 717c, 717d], any amount paid in any sale authorized under 
        section 3362(a) of this title shall be deemed to be just and 
        reasonable if such amount does not exceed the fair and equitable 
        price established under such section and applicable to such 
        sale.

        (C) Sales by intrastate pipelines

            For purposes of sections 4 and 5 of the Natural Gas Act [15 
        U.S.C. 717c, 717d] any amount paid in any sale authorized by the 
        Commission under section 3371(b) of this title shall be deemed 
        to be just and reasonable if such amount does not exceed the 
        fair and equitable price established by the Commission and 
        applicable to such sale.

        (D) Assignments

            For purposes of sections 4 and 5 of the Natural Gas Act [15 
        U.S.C. 717c, 717d], any amount paid pursuant to the terms of any 
        contract with respect to that portion of which the Commission 
        has authorized an assignment authorized under section 3372(a) of 
        this title shall be deemed to be just and reasonable.

        (E) Affiliated entities limitation

            For purposes of paragraph (1), in the case of any first sale 
        between any interstate pipeline and any affiliate of such 
        pipeline, any amount paid in any first sale shall be deemed to 
        be just and reasonable if, in addition to satisfying the 
        requirements of such paragraph, such amount does not exceed the 
        amount paid in comparable first sales between persons not 
        affiliated with such interstate pipeline.

                          (2) Other charges

        (A) Allocation

            For purposes of sections 4 and 5 of the Natural Gas Act [15 
        U.S.C. 717c, 717d], any amount paid by any interstate pipeline 
        for transportation, storage, delivery or other services provided 
        pursuant to any order under section 3363(b), (c), or (d) of this 
        title shall be deemed to be just and reasonable if such amount 
        is prescribed by the President under section 3363(h)(1) of this 
        title.

        (B) Transportation

            For purposes of sections 4 and 5 of the Natural Gas Act [15 
        U.S.C. 717c, 717d], any amount paid by any interstate pipeline 
        for any transportation authorized by the Commission under 
        section 3371(a) of this title shall be deemed to be just and 
        reasonable if such amount does not exceed that approved by the 
        Commission under such section.

(c) Guaranteed passthrough

         (1) Certificate may not be denied based upon price

        The Commission may not deny, or condition the grant of, any 
    certificate under section 7 of the Natural Gas Act [15 U.S.C. 717f] 
    based upon the amount paid in any sale of natural gas, if such 
    amount is deemed to be just and reasonable under subsection (b) of 
    this section.

           (2) Recovery of just and reasonable prices paid

        For purposes of sections 4 and 5 of the Natural Gas Act [15 
    U.S.C. 717c, 717d], the Commission may not deny any interstate 
    pipeline recovery of any amount paid with respect to any purchase of 
    natural gas if, under subsection (b) of this section, such amount is 
    deemed to be just and reasonable for purposes of sections 4 and 5 of 
    such Act, except to the extent the Commission determines that the 
    amount paid was excessive due to fraud, abuse, or similar grounds.

(Pub. L. 95-621, title VI, Sec. 601, Nov. 9, 1978, 92 Stat. 3409; Pub. 
L. 101-60, Sec. 3(a)(7), (b)(7), July 26, 1989, 103 Stat. 158, 159.)

                       References in Text

    The Natural Gas Act, referred to in subsec. (a)(1), (2)(A), (B), is 
act June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is 
classified generally to chapter 15B (Sec. 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. (a)(1)(A). Pub. L. 101-60, Sec. 3(b)(7)(A), in heading 
substituted ``Application to first sales'' for ``Natural gas not 
committed or dedicated'' and amended text generally. Prior to amendment, 
text read as follows: ``For purposes of section 1(b) of the Natural Gas 
Act, effective on the first day of the first month beginning after 
November 9, 1978, the provisions of the Natural Gas Act and the 
jurisdiction of the Commission under such Act shall not apply to natural 
gas which was not committed or dedicated to interstate commerce as of 
November 8, 1978, solely by reason of any first sale of such natural 
gas.''
    Subsec. (a)(1)(B). Pub. L. 101-60, Sec. 3(b)(7)(B), (C), 
redesignated subpar. (C) as (B) and struck out former subpar. (B) which 
related to committed or dedicated natural gas which was high-cost 
natural gas, new natural gas, or natural gas produced from any new, 
onshore production well.
    Subsec. (a)(1)(C). Pub. L. 101-60, Sec. 3(b)(7)(C), (D), 
redesignated subpar. (D) as (C) and substituted ``subparagraph (A) or 
(B)'' for ``subparagraph (A), (B), or (C)''. Former subpar. (C) 
redesignated (B).
    Subsec. (a)(1)(D). Pub. L. 101-60, Sec. 3(b)(7)(C), redesignated 
subpar. (D) as (C).
    Subsec. (a)(1)(E). Pub. L. 101-60, Sec. 3(b)(7)(B), struck out 
subpar. (E), ``Certain additional natural gas'', which read as follows: 
``For purposes of section 1(b) of the Natural Gas Act, the provisions of 
the Natural Gas Act and the jurisdiction of the Commission under such 
Act shall not apply solely by reason of any first sale of natural gas 
which is committed or dedicated to interstate commerce as of July 25, 
1989, and which is not subject to a maximum lawful price under part A of 
subchapter I of this chapter by reason of section 3331(f) of this title, 
effective as of the date such gas ceases to be subject to such maximum 
lawful price.''
    Pub. L. 101-60, Sec. 3(a)(7)(A), substituted ``Certain additional 
natural gas'' for ``Alaskan natural gas'' in heading and amended text 
generally. Prior to amendment, text read as follows: ``Subparagraph 
(B)(ii) and (iii) shall not apply with respect to natural gas produced 
from the Prudhoe Bay unit of Alaska and transported through the 
transportation system approved under the Alaska Natural Gas 
Transportation Act of 1976.''
    Subsec. (b)(1)(A). Pub. L. 101-60, Sec. 3(b)(7)(E), amended subpar. 
(A) generally. Prior to amendment, subpar. (A) read as follows: 
``Subject to paragraph (4), for purposes of sections 4 and 5 of the 
Natural Gas Act, any amount paid in any first sale of natural gas shall 
be deemed to be just and reasonable if--
        ``(i) such amount does not exceed the applicable maximum lawful 
    price established under subchapter I of this chapter; or
        ``(ii) there is no applicable maximum lawful price solely by 
    reason of the elimination of price controls pursuant to part B of 
    subchapter I of this chapter.''
    Subsec. (b)(1)(D). Pub. L. 101-60, Sec. 3(b)(7)(F), struck out 
before period at end ``if such amount does not exceed the applicable 
maximum lawful price established under subchapter I of this chapter''.
    Subsec. (c)(2). Pub. L. 101-60, Sec. 3(a)(7)(B), substituted 
``purchase of natural gas if, under subsection (b) of this section, such 
amount is deemed to be just and reasonable for purposes of sections 4 
and 5 of such Act,'' for ``purchase of natural gas if--
        ``(A) under subsection (b) of this section, such amount is 
    deemed to be just and reasonable for purposes of sections 4 and 5 of 
    such Act, and
        ``(B) such recovery is not inconsistent with any requirement of 
    any rule under section 3341 of this title (including any amendment 
    under section 3342 of this title),''.


                    Effective Date of 1989 Amendment

    Amendment by section 3(b)(7) of Pub. L. 101-60 effective Jan. 1, 
1993, see section 3(b) of Pub. L. 101-60, set out as a note under 
section 3372 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 3372 of this title.
