15 U.S.C. § 3301 — Definitions

Page 1999 TITLE 15—COMMERCE AND TRADE § 3301 Sec. SUBCHAPTER III—ADDITIONAL AUTHORITIES AND REQUIREMENTS PART A—EMERGENCY AUTHORITY 3361. Declaration of emergency. 3362. Emergency purchase authority. 3363. Emergency allocation authority. 3364. Miscellaneous provisions. PART B—OTHER AUTHORITIES AND REQUIREMENTS 3371. Authorization of certain sales and transpor- tation. 3372. Assignment of contractual rights to receive surplus natural gas. 3373. Effect of certain natural gas prices on indefi- nite price escalator clauses. 3374. Clauses prohibiting certain sales, transpor- tation, and commingling. 3375. Filing of contracts and agreements. SUBCHAPTER IV—NATURAL GAS CURTAILMENT POLICIES 3391. Natural gas for essential agricultural uses. 3391a. ‘‘Essential agricultural use’’ defined. 3392. Natural gas for essential industrial process and feedstock uses. 3393. Establishment and implementation of prior- ities. 3394. Limitation on revoking or amending certain pre-1969 certificates of public convenience and necessity. SUBCHAPTER V—ADMINISTRATION, ENFORCEMENT, AND REVIEW 3411. General rulemaking authority. 3412. Administrative procedure. 3413. Repealed. 3414. Enforcement. 3415. Intervention. 3416. Judicial review. 3417. Repealed. 3418. Applicability of other Federal statutory pro- visions relating to information-gathering. SUBCHAPTER VI—COORDINATION WITH NATURAL GAS ACT; MISCELLANEOUS PROVISIONS 3431. Coordination with the Natural Gas Act. 3432. Effect on State laws. § 3301. Definitions For purposes of this chapter— (1) Natural gas The term ‘‘natural gas’’ means either nat- ural gas unmixed, or any mixture of natural and artificial gas. (2) Well The term ‘‘well’’ means any well for the dis- covery or production of natural gas, crude oil, or both. (3) New well The term ‘‘new well’’ means any well— (A) the surface drilling of which began on or after February 19, 1977; or (B) the depth of which was increased, by means of drilling on or after February 19, 1977, to a completion location which is lo- cated at least 1,000 feet below the depth of the deepest completion location of such well attained before February 19, 1977. (4) Old well The term ‘‘old well’’ means any well other than a new well. (5) Marker well (A) General rule The term ‘‘marker well’’ means any well from which natural gas was produced in commercial quantities at any time after January 1, 1970, and before April 20, 1977. (B) New wells The term ‘‘marker well’’ does not include any new well under paragraph (3)(A) but in- cludes any new well under paragraph (3)(B) if such well qualifies as a marker well under subparagraph (A) of this paragraph. (6) Reservoir The term ‘‘reservoir’’ means any producible natural accumulation of natural gas, crude oil, or both, confined— (A) by impermeable rock or water barriers and characterized by a single natural pres- sure system; or (B) by lithologic or structural barriers which prevent pressure communication. (7) Completion location (A) General rule The term ‘‘completion location’’ means any subsurface location from which natural gas is being or has been produced in com- mercial quantities. (B) Marker well The term ‘‘completion location’’, when used with reference to any marker well, means any subsurface location from which natural gas was produced from such well in commercial quantities after January 1, 1970, and before April 20, 1977. (8) Proration unit The term ‘‘proration unit’’ means— (A) any portion of a reservoir, as des- ignated by the State or Federal agency hav- ing regulatory jurisdiction with respect to production from such reservoir, which will be effectively and efficiently drained by a single well; (B) any drilling unit, production unit, or comparable arrangement, designated or rec- ognized by the State or Federal agency hav- ing jurisdiction with respect to production from the reservoir, to describe that portion of such reservoir which will be effectively and efficiently drained by a single well; or (C) if such portion of a reservoir, unit, or comparable arrangement is not specifically provided for by State law or by any action of any State or Federal agency having regu- latory jurisdiction with respect to produc- tion from such reservoir, any voluntary unit agreement or other comparable arrangement applied, under local custom or practice with- in the locale in which such reservoir is situ- ated, for the purpose of describing the por- tion of a reservoir which may be effectively and efficiently drained by a single well. (9) New lease The term ‘‘new lease’’, when used with re- spect to the Outer Continental Shelf, means a lease, entered into on or after April 20, 1977, of submerged acreage. Page 2000 TITLE 15—COMMERCE AND TRADE § 3301 (10) Old lease The term ‘‘old lease’’, when used with re- spect to the Outer Continental Shelf, means any lease other than a new lease. (11) New contract The term ‘‘new contract’’ means any con- tract, entered into on or after November 9, 1978, for the first sale of natural gas which was not previously subject to an existing contract. (12) Rollover contract The term ‘‘rollover contract’’ means any contract, entered into on or after November 9, 1978, for the first sale of natural gas that was previously subject to an existing contract which expired at the end of a fixed term (not including any extension thereof taking effect on or after November 9, 1978) specified by the provisions of such existing contract, as such contract was in effect on November 9, 1978, whether or not there is an identity of parties or terms with those of such existing contract. (13) Existing contract The term ‘‘existing contract’’ means any contract for the first sale of natural gas in ef- fect on November 8, 1978. (14) Successor to an existing contract The term ‘‘successor to an existing con- tract’’ means any contract, other than a roll- over contract, entered into on or after Novem- ber 9, 1978, for the first sale of natural gas which was previously subject to an existing contract, whether or not there is an identity of parties or terms with those of such existing contract. (15) Interstate pipeline The term ‘‘interstate pipeline’’ means any person engaged in natural gas transportation subject to the jurisdiction of the Commission under the Natural Gas Act [15 U.S.C. 717 et seq.]. (16) Intrastate pipeline The term ‘‘intrastate pipeline’’ means any person engaged in natural gas transportation (not including gathering) which is not subject to the jurisdiction of the Commission under the Natural Gas Act [15 U.S.C. 717 et seq.] (other than any such pipeline which is not sub- ject to the jurisdiction of the Commission solely by reason of section 1(c) of the Natural Gas Act [15 U.S.C. 717(c)]). (17) Local distribution company The term ‘‘local distribution company’’ means any person, other than any interstate pipeline or any intrastate pipeline, engaged in the transportation, or local distribution, of natural gas and the sale of natural gas for ul- timate consumption. (18) Committed or dedicated to interstate com- merce (A) General rule The term ‘‘committed or dedicated to interstate commerce’’, when used with re- spect to natural gas, means— (i) natural gas which is from the Outer Continental Shelf; and (ii) natural gas which, if sold, would be required to be sold in interstate commerce (within the meaning of the Natural Gas Act [15 U.S.C. 717 et seq.]) under the terms of any contract, any certificate under the Natural Gas Act, or any provision of such Act. (B) Exclusion Such term does not apply with respect to— (i) natural gas sold in interstate com- merce (within the meaning of the Natural Gas Act [15 U.S.C. 717 et seq.])— (I) under section 6 of the Emergency Natural Gas Act of 1977; (II) under any limited term certificate, granted pursuant to section 7 of the Nat- ural Gas Act [15 U.S.C. 717f], which con- tains a pregrant of abandonment of serv- ice for such natural gas; (III) under any emergency regulation under the second proviso of section 7(c) of the Natural Gas Act [15 U.S.C. 717f(c)]; or (IV) to the user by the producer and transported under any certificate, grant- ed pursuant to section 7(c) of the Natural Gas Act [15 U.S.C. 717f(c)], if such certifi- cate was specifically granted for the transportation of that natural gas for such user; (ii) natural gas for which abandonment of service was granted before November 9, 1978, under section 7 of the Natural Gas Act [15 U.S.C. 717f]; and (iii) natural gas which, but for this clause, would be committed or dedicated to interstate commerce under subpara- graph (A)(ii) by reason of the action of any person (including any successor in interest thereof, other than by means of any rever- sion of a leasehold interest), if on May 31, 1978— (I) neither that person, nor any affil- iate thereof, had any right to explore for, develop, produce, or sell such natural gas; and (II) such natural gas was not being sold in interstate commerce (within the meaning of the Natural Gas Act [15 U.S.C. 717 et seq.]) for resale (other than any sale described in clause (i)(I), (II), or (III)). (19) Certificated natural gas The term ‘‘certificated natural gas’’ means natural gas transported by any interstate pipeline in a facility for which there is in ef- fect a certificate issued under section 7(c) of the Natural Gas Act [15 U.S.C. 717f(c)]. Such term does not include natural gas sold to the user by the producer and transported pursuant to a certificate which is specifically issued under section 7(c) of the Natural Gas Act for the transportation of that natural gas, for such user unless such natural gas is used for the generation of electricity. (20) Sale The term ‘‘sale’’ means any sale, exchange, or other transfer for value. Page 2001 TITLE 15—COMMERCE AND TRADE § 3301 (21) First sale (A) General rule The term ‘‘first sale’’ means any sale of any volume of natural gas— (i) to any interstate pipeline or intra- state pipeline; (ii) to any local distribution company; (iii) to any person for use by such person; (iv) which precedes any sale described in clauses (i), (ii), or (iii); and (v) which precedes or follows any sale de- scribed in clauses (i), (ii), (iii), or (iv) and is defined by the Commission as a first sale in order to prevent circumvention of any maximum lawful price established under this chapter. (B) Certain sales not included Clauses (i), (ii), (iii), or (iv) of subpara- graph (A) shall not include the sale of any volume of natural gas by any interstate pipeline, intrastate pipeline, or local dis- tribution company, or any affiliate thereof, unless such sale is attributable to volumes of natural gas produced by such interstate pipeline, intrastate pipeline, or local dis- tribution company, or any affiliate thereof. (22) Deliver The term ‘‘deliver’’, when used with respect to any first sale of natural gas, means the physical delivery from the seller; except that in the case of the sale of proven reserves in place to any interstate pipeline, any intra- state pipeline, any local distribution company, or any user of such natural gas, such term means the transfer of title to such reserves. (23) Certificate The term ‘‘certificate’’, when used with re- spect to the Natural Gas Act [15 U.S.C. 717 et seq.], means a certificate of public conven- ience and necessity issued under such Act. (24) Commission The term ‘‘Commission’’ means the Federal Energy Regulatory Commission. (25) Federal agency The term ‘‘Federal agency’’ has the same meaning as given such term in section 105 of title 5. (26) Person The term ‘‘person’’ includes the United States, any State, and any political subdivi- sion, agency, or instrumentality of the fore- going. (27) Affiliate The term ‘‘affiliate’’, when used in relation to any person, means another person which controls, is controlled by, or is under common control with, such person. (28) Electric utility The term ‘‘electric utility’’ means any per- son to the extent such person is engaged in the business of the generation of electricity and sale, directly or indirectly, of electricity to the public. (29) Mcf The term ‘‘Mcf’’, when used with respect to natural gas, means 1,000 cubic feet of natural gas measured at a pressure of 14.73 pounds per square inch (absolute) and a temperature of 60 degrees Fahrenheit. (30) Btu The term ‘‘Btu’’ means British thermal unit. (31) Month The term ‘‘month’’ means a calendar month. (32) Mile The term ‘‘mile’’ means a statute mile of 5,280 feet. (33) United States The term ‘‘United States’’ means the several States and includes the Outer Continental Shelf. (34) State The term ‘‘State’’ means each of the several States and the District of Columbia. (35) Outer Continental Shelf The term ‘‘Outer Continental Shelf’’ has the same meaning as such term has under section 1331(a) of title 43. (36) Prudhoe Bay Unit of Alaska The term ‘‘Prudhoe Bay Unit of Alaska’’ means the geographic area subject to the vol- untary unit agreement approved by the Com- missioner of the Department of Natural Re- sources of the State of Alaska on June 2, 1977, and referred to as the ‘‘affected area’’ in Con- servation Order No. 145 of the Alaska Oil and Gas Conservation Committee, Division of Oil and Gas Conservation, Department of Natural Resources of the State of Alaska, as such order was in effect on June 1, 1977, and deter- mined without regard to any adjustments in the description of the affected area permitted to be made under such order. (37) Antitrust laws The term ‘‘Federal antitrust laws’’ means the Sherman Act (15 U.S.C. 1 et seq.), the Clay- ton Act (15 U.S.C. 12, 13, 14–19, 20, 21, 22–27), the Federal Trade Commission Act (15 U.S.C. 41 et seq.), sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8–9), and the Act of June 19, 1936, chapter 592 (15 U.S.C. 13, 13a, 13b, and 21a). (Pub. L. 95–621, § 2, Nov. 9, 1978, 92 Stat. 3352.) Editorial Notes REFERENCES IN TEXT The Natural Gas Act, and such Act, referred to in pars. (15), (16), (18)(A)(ii), (B)(i), (iii)(II), (23), is act June 21, 1938, ch. 556, 52 Stat. 821, which is classified gen- erally to chapter 15B (§ 717 et seq.) of this title. For complete classification of this Act to the Code, see sec- tion 717w of this title and Tables. Section 6 of the Emergency Natural Gas Act of 1977, referred to in par. (18)(B)(i)(I), is Pub. L. 95–2, § 6, Feb. 2, 1977, 91 Stat. 7, which was formerly set out in a note under section 717 of this title. The Sherman Act (15 U.S.C. 1 et seq.), referred to in par. (37), is act July 2, 1890, ch. 647, 26 Stat. 209, which is classified to sections 1 to 7 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1 of this title and Tables. The Clayton Act (15 U.S.C. 12, 13, 14–19, 20, 21, 22–27), referred to in par. (37), is act Oct. 15, 1914, ch. 323, 38 Stat. 730, which is classified generally to sections 12, 13, Page 2002 TITLE 15—COMMERCE AND TRADE §§ 3311 to 3333 14 to 19, 21, and 22 to 27 of this title, and sections 52 and 53 of Title 29, Labor. For further details and complete classification of this Act to the Code, see References in Text note set out under section 12 of this title and Ta- bles. The Federal Trade Commission Act (15 U.S.C. 41 et seq.), referred to in par. (37), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, which is classified generally to sub- chapter I (§ 41 et seq.) of chapter 2 of this title. For complete classification of this Act to the Code, see sec- tion 58 of this title and Tables. Act of June 19, 1936, chapter 592, referred to in par. (37), means act June 19, 1936, ch. 592, 49 Stat. 1526, popu- larly known as the Robinson-Patman Antidiscrimina- tion Act and also as the Robinson-Patman Price Dis- crimination Act, which enacted sections 13a, 13b, and 21a of this title and amended section 13 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 13 of this title and Tables. Statutory Notes and Related Subsidiaries SHORT TITLE OF 1989 AMENDMENT Pub. L. 101–60, § 1, July 26, 1989, 103 Stat. 157, provided that: ‘‘This Act [amending sections 3331, 3372, 3373, 3375, 3411, 3412, 3414, 3416, 3431, and 3432 of this title, repealing sections 3311 to 3320, 3331 to 3333, 3413, and 3417 of this title, and enacting provisions set out as notes under sections 3311 and 3372 of this title] may be cited as the ‘Natural Gas Wellhead Decontrol Act of 1989’.’’ SHORT TITLE Pub. L. 95–621, § 1, Nov. 9, 1978, 92 Stat. 3351, provided that: ‘‘This Act [enacting this chapter and amending section 7255 of Title 42, The Public Health and Welfare] may be cited as the ‘Natural Gas Policy Act of 1978’.’’ SUBCHAPTER I—WELLHEAD PRICING §§ 3311 to 3333. Repealed. Pub. L. 101–60, § 2(b), July 26, 1989, 103 Stat. 158 Sections 3311 to 3320 comprised part A of this sub- chapter. Section 3311, Pub. L. 95–621, title I, § 101, Nov. 9, 1978, 92 Stat. 3356, related to inflation adjustments and other general price ceiling rules to be applied in establishing wellhead price controls. Section 3312, Pub. L. 95–621, title I, § 102, Nov. 9, 1978, 92 Stat. 3358; Pub. L. 102–154, title I, Nov. 13, 1991, 105 Stat. 1000, related to ceiling price for new natural gas and certain gas produced from Outer Continental Shelf. Section 3313, Pub. L. 95–621, title I, § 103, Nov. 9, 1978, 92 Stat. 3361, related to ceiling price for new, onshore production wells. Section 3314, Pub. L. 95–621, title I, § 104, Nov. 9, 1978, 92 Stat. 3362, related to a ceiling price for sales of nat- ural gas dedicated to interstate commerce. Section 3315, Pub. L. 95–621, title I, § 105, Nov. 9, 1978, 92 Stat. 3363, related to ceiling price for sales under intrastate contracts existing on Nov. 8, 1978. Section 3316, Pub. L. 95–621, title I, § 106, Nov. 9, 1978, 92 Stat. 3365, related to ceiling price for sales under rollover contracts. Section 3317, Pub. L. 95–621, title I, § 107, Nov. 9, 1978, 92 Stat. 3366, related to ceiling price for high-cost nat- ural gas. Section 3318, Pub. L. 95–621, title I, § 108, Nov. 9, 1978, 92 Stat. 3367, related to ceiling price for stripper well natural gas. Section 3319, Pub. L. 95–621, title I, § 109, Nov. 9, 1978, 92 Stat. 3368, related to ceiling price for other cat- egories of natural gas. Section 3320, Pub. L. 95–621, title I, § 110, Nov. 9, 1978, 92 Stat. 3368, related to treatment of State severance taxes and certain production-related costs. Sections 3331 to 3333 comprised part B of this sub- chapter. Section 3331, Pub. L. 95–621, title I, § 121, Nov. 9, 1978, 92 Stat. 3369; Pub. L. 101–60, § 2(a), July 26, 1989, 103 Stat. 157, provided for elimination of price controls for cer- tain natural gas sales. Section 3332, Pub. L. 95–621, title I, § 122, Nov. 9, 1978, 92 Stat. 3370, related to standby price control author- ity. Section 3333, Pub. L. 95–621, title I, § 123, Nov. 9, 1978, 92 Stat. 3371, related to reports to Congress by Depart- ment of Energy. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Section 2(b) of Pub. L. 101–60 provided that the repeal of sections 3311 to 3320 and 3331 to 3333 is effective Jan. 1, 1993. SUBCHAPTER II—INCREMENTAL PRICING §§ 3341 to 3348. Repealed. Pub. L. 100–42, § 2(a), May 21, 1987, 101 Stat. 314 Section 3341, Pub. L. 95–621, title II, § 201, Nov. 9, 1978, 92 Stat. 3371, required Commission to prescribe and make effective a rule designed to provide for pass- through of costs of natural gas, with respect to boiler fuel use of natural gas by industrial boiler fuel facili- ties, not later than 12 months after Nov. 9, 1978. Section 3342, Pub. L. 95–621, title II, § 202, Nov. 9, 1978, 92 Stat. 3372, required Commission to prescribe an amendment to rule required under section 3341 of this title, which would expand its application to other in- dustrial uses, not later than 18 months after Nov. 9, 1978. Section 3343, Pub. L. 95–621, title II, § 203, Nov. 9, 1978, 92 Stat. 3373, enumerated acquisition costs subject to passthrough requirements of rule prescribed under sec- tion 3341 of this title. Section 3344, Pub. L. 95–621, title II, § 204, Nov. 9, 1978, 92 Stat. 3375, related to method of passthrough. Section 3345, Pub. L. 95–621, title II, § 205, Nov. 9, 1978, 92 Stat. 3378, related to direct passthrough of sur- charges paid by local distributors on natural gas deliv- ered by interstate pipelines to industrial facilities served by such local distributors. Section 3346, Pub. L. 95–621, title II, § 206, Nov. 9, 1978, 92 Stat. 3379, enumerated exemptions from application of rule required under section 3341 of this title. Section 3347, Pub. L. 95–621, title II, § 207, Nov. 9, 1978, 92 Stat. 3380, related to application of section 3343 to certain natural gas and liquefied natural gas imports. Section 3348, Pub. L. 95–621, title II, § 208, Nov. 9, 1978, 92 Stat. 3381, directed that Alaska natural gas be allo- cated to rates and charges of interstate pipelines in ac- cordance with certain general principles applicable on Nov. 9, 1978, for establishing rates. Statutory Notes and Related Subsidiaries REPEAL OF INCREMENTAL PRICING REQUIREMENTS Pub. L. 100–42, § 2, May 21, 1987, 101 Stat. 314, provided that: ‘‘(a) REPEAL.—Subject to subsections (b) and (c) of this section, title II of the Natural Gas Policy Act of 1978 (15 U.S.C. 3341–3348) is repealed, and the items re- lating to title II are stricken from the table of contents of that Act. ‘‘(b) LIMITED CONTINUING EFFECT OF RULES.—A rule promulgated by the Federal Energy Regulatory Com- mission, under title II of the Natural Gas Policy Act of 1978 shall continue in effect only with respect to the flowthrough of costs incurred before the enactment of this section [May 21, 1987], including any surcharges based on such costs. ‘‘(c) IMPLEMENTATION.—The Federal Energy Regu- latory Commission may take appropriate action to im- plement this section.’’