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MISCELLANEOUS GAS PROVISIONS

[PUBLIC LAW 95–617; 92 STAT 3167]

TITLE VI-MISCELLANEOUS GAS PROVISIONS

SEC. S. CONSERVED NATURAL GAS.

15 USC 717.. (a) GENERAL RCLE-(1) For purposes of deterinining the natural gas entitlement of any local distribution company under any curtailnent plan, if the Conimission revises any base period established under such plan, the volumes of natural gas which such local distribution coinpany demonstrates

(A) were sold by the local distribution company, for a priority use immediately before the implementation of conservation measures, and

(B) were conserved by reason of the implementation of such conservation nieasures, shall be treated by the Commission following such revision as continuing to be used for the priority use referred to in subparagraph (A).

(2) The Commission shall, by rule, prescribe methods for measurement of volumes of natural gas to which subparagraphs (A) and (B) of pangraph (1) apply.

(b) CONDITIONS, LIMITATIONS, ETC. Subsection () shall not limit or otherwise affect any provision of any curtailment plan, or any other provision of law or regulation, under which natural gas may be diverted or allocated to respond to emergency situations or to protect public health, safety, and welfare. (c) DEFINITIONS.— For purposes of this section

(1) The term “conservation measures” means such energy conservation measures, as determined by the Commission, as were implemented after the base period established under the curtail. ment plan in effect on the date of the enactment of this Act.

(2) 'The term "local distribution company” means any person engaged in the transportation, or local distribution, of natural gas and the sale of natural gas for ultimate consumption.

(3) The term "curtailment plan” means a plan (including any modification of such plan required by the Natural Gas Policy Act of 1978) in effect under the Natural Gas Act which provides for recognizing and implementing priorities of service during periods 15 USC 717w.

of curtailed deliveries. SEC. 606. VOLUNTARY CONVERSION OF NATURAL GAS USERS TO 15 USC 717y.

HEAVY FUEL GIL (1) Is GENERAL.-(1) In order to facilitate voluntary conversion of facilities from the use of natural gas to the use of heavy petroleum fuel oil , the Commission shall, by rule, provide a procedure

for the approval by the Commission of any transfer to any person described in paragraph 2(B) (i), (ii), or (iii) of contractual interests involving the receipt of natural gas described in paragraph 2(A). (2)(A) The rule required under paragraph (1) shall apply to (i) natunl gas.

(I) received by the user pursuant to a contract entered into before September 1, 1977, not including any renewal or exten

15 USC 717w.

sion thereof entered into on or after such date other than any such extension or renewal pursuant to the exercise by such user of an option to extend or renew such contract;

(II) other than natural gas the sale for resale or the transportation of which was subject to the jurisdiction of the Fed. eral Power Commission under the Natural Gas Act as of September 1, 1977;

(III) which was used as a fuel in any facility in existence on September 1, 1977. (ii) natural gas subject to a prohibition order issued under section 607. (B) The rule required under paragraph (1) shall permit the transfer of contractual interests

(i) to any interstate pipeline;

(ii) to any local distribution company served by an interstate pipeline; and

(iii) to any person served by an interstate pipeline for a high priority use by'such person.

(3) The rule required under paragraph (1) shall provide that any transfer of contractual interests pursuant to such rule shall be under such terms and conditions as the Commission may prescribe. Such rule shall include a requirement for refund of any consideration, received by the person transferring contractual interests pursuant to such rule, to the extent such consideration exceeds the amount by which the costs actually incurred, during the remainder of the period of the contract with respect to which such contractual interests are transferred, in direct association with the use of heavy petroleum fuel oil as a fuel in the applicable facility exceeds the price under such contract for natural gas, subject to such contract, delivered during such period.

(4) In prescribing the rule required under paragraph (1), and in determining whether to approve any transfer of contractual interests, the Commission shall consider whether such transfer of contractual interests is likely to increase demand for imported refined petroleum products.

(b) COMMISSION APPROVAL-(1) No transfer of contractual interests authorized by the rule required under subsection (a)(1) may take effect unless the Commission issues a certificate of public convenience and necessity for such transfer if such natural gas is to be resold by the person to whom such contractual interests are to be transferred. Such certificate shall be issued by the Commission in accordance with the requirements of this subsection and those of section 7 of the Natural Gas Act, and the provisions of such Act applicable to the determina. tion of satisfaction of the public convenience and necessity require. ments of such section.

(2) The rule required under subsection (a)(1) shall set forth guide. lines for the application on a regional or national basis (as the Commis. sion determines appropriate) of the criteria specified in subsection (e) (2) and (3) to determine the maximum consideration permitted as just compensation under this section.

(c) RESTRICTIONS ON TRANSFERS UNENFORCEABLE.- Any provision of any contract, which provision prohibits any transfer of any contractual interests thereunder, or any commingling or transportation of natural gas subject to such contract with natural gas the sale for resale or transportation of which is subject to the jurisdiction of the Commission under the Natural Gas Act, or terminates such contract on the basis of any such transfer, commingling, or transportation, shall be unenforceable in any court of the United States and in any court

15 USC 7171.

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