1 

NATURAL GAS ACT 

[The Act of June 21, 1938, Chapter 556] 

[As Amended Through P.L. 109–58, Enacted August 8, 2005] 

øCurrency: This publication is a compilation of the text of Chapter 556 of the 75th 

Congress. It was last amended by the public law listed in the As Amended 

Through note above and below at the bottom of each page of the pdf version and 

reflects current law through the date of the enactment of the public law listed at 

https://www.govinfo.gov/app/collection/comps/¿ 

øNote: While this publication does not represent an official version of any Federal 

statute, substantial efforts have been made to ensure the accuracy of its contents. 

The official version of Federal law is found in the United States Statutes at Large 

and in the United States Code. The legal effect to be given to the Statutes at 

Large and the United States Code is established by statute (1 U.S.C. 112, 204).¿ 

AN ACT To regulate the transportation and sale of natural gas in interstate 

commerce, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled, 

NECESSITY FOR REGULATION OF NATURAL GAS COMPANIES

SECTION 1. (a) As disclosed in reports of the Federal Trade 

Commission made pursuant to Senate Resolution 83 (Seventieth 

Congress, first session) and other reports made pursuant to the authority of Congress, it is hereby declared that the business of transporting and selling natural gas for ultimate distribution to the public is affected with a public interest, and that Federal regulation in 

matters relating to the transportation of natural gas and the sale 

thereof in interstate and foreign commerce is necessary in the public interest. 

(b) The provisions of this Act shall apply to the transportation 

of natural gas in interstate commerce, to the sale in interstate commerce of natural gas for resale for ultimate public consumption for 

domestic, commercial, industrial, or any other use, and to natural 

gas companies engaged in such transportation or sale, and to the 

importation or exportation of natural gas in foreign commerce and 

to persons engaged in such importation or exportation, but shall 

not apply to any other transportation or sale of natural gas or to 

the local distribution of natural gas or to the facilities used for such 

distribution or to the production or gathering of natural gas. 

(c) The provisions of this Act shall not apply to any person engaged in or legally authorized to engage in the transportation in 

interstate commerce or the sale in interstate commerce for resale, 

of natural gas received by such person from another person within 

or at the boundary of a State if all the natural gas so received is 

ultimately consumed within such State, or to any facilities used by 


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Sec. 2 NATURAL GAS ACT 2 

such person for such transportation or sale, provided that the rates 

and service of such person and facilities be subject to regulation by 

a State commission. The matters exempted from the provisions of 

this Act by this subsection are hereby declared to be matters primarily of local concern and subject to regulation by the several 

States. A certification from such State commission to the Federal 

Power Commission that such State commission has regulatory jurisdiction over rates and service of such person and facilities and 

is exercising such jurisdiction shall constitute conclusive evidence 

of such regulatory power or jurisdiction. 

(d) The provisions of this Act shall not apply to any person 

solely by reason of, or with respect to, any sale or transportation 

of vehicular natural gas if such person is— 

(1) not otherwise a natural-gas company; or 

(2) subject primarily to regulation by a State commission, 

whether or not such State commission has, or is exercising, jurisdiction over the sale, sale for resale, or transportation of vehicular natural gas. 

ø15 U.S.C. 717¿ 

SEC. 2. When used in this Act, unless the context otherwise requires— 

(1) ‘‘Person’’ includes an individual or a corporation. 

(2) ‘‘Corporation’’ includes any corporation, joint stock company, partnership, association, business trust, organized group 

of persons, whether incorporated or not, receiver or receivers, 

trustee or trustees of any of the foregoing, but shall not include 

municipalities as hereinafter defined. 

(3) ‘‘Municipality’’ means a city, county, or other political 

subdivision or agency of a State. 

(4) ‘‘State’’ means a State admitted to the Union, the District of Columbia, and any organized Territory of the United 

States. 

(5) ‘‘Natural gas’’ means either natural gas unmixed, or 

any mixture of natural and artificial gas. 

(6) ‘‘Natural-gas company’’ means a person engaged in the 

transportation of natural gas in interstate commerce, or the 

sale in interstate commerce of such gas for resale. 

(7) ‘‘Interstate commerce’’ means commerce between any 

point in a State and any point outside thereof, or between 

points within the same State but through any place outside 

thereof, but only insofar as such commerce takes place within 

the United States. 

(8) ‘‘State commission’’ means the regulatory body of the 

State or municipality having jurisdiction to regulate rates and 

charges for the sale of natural gas to consumers within the 

State or municipality. 

(9) ‘‘Commission’’ and ‘‘Commissioner’’ means the Federal 

Power Commission, and a member thereof, respectively. 

(10) ‘‘Vehicular natural gas’’ means natural gas that is ultimately used as a fuel in a self-propelled vehicle. 

(11) ‘‘LNG terminal’’ includes all natural gas facilities located onshore or in State waters that are used to receive, unload, load, store, transport, gasify, liquefy, or process natural 


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gas that is imported to the United States from a foreign country, exported to a foreign country from the United States, or 

transported in interstate commerce by waterborne vessel, but 

does not include— 

(A) waterborne vessels used to deliver natural gas to 

or from any such facility; or 

(B) any pipeline or storage facility subject to the jurisdiction of the Commission under section 7. 

ø15 U.S.C. 717a¿ 

EXPORTATION OR IMPORTATION OF NATURAL GAS; LNG TERMINALS

SEC. 3. (a) After six months from the date on which this act 

takes effect no person shall export any natural gas from the United 

States to a foreign country or import any natural gas from a foreign country without first having secured an order of the Commission authorizing it to do so. The Commission shall issue such order 

upon application, unless, after opportunity for hearing, it finds that 

the proposed exportation or importation will not be consistent with 

the public interest. The Commission may by its order grant such 

application, in whole or in part, with such modification and upon 

such terms and conditions as the Commission may find necessary 

or appropriate, and may from time to time, after opportunity for 

hearing, and for good cause shown, make such supplemental order 

in the premises as it may find necessary or appropriate. 

(b) With respect to natural gas which is imported into the 

United States from a nation with which there is in effect a free 

trade agreement requiring national treatment for trade in natural 

gas, and with respect to liquefied natural gas— 

(1) the importation of such natural gas shall be treated as 

a ‘‘first sale’’ within the meaning of section 2(21) of the Natural 

Gas Policy Act of 1978; and 

(2) the Commission shall not, on the basis of national origin, treat any such imported natural gas on an unjust, unreasonable, unduly discriminatory, or preferential basis. 

(c) For purposes of subsection (a), the importation of the natural gas referred to in subsection (b), or the exportation of natural 

gas to a nation with which there is in effect a free trade agreement 

requiring national treatment for trade in natural gas, shall be 

deemed to be consistent with the public interest, and applications 

for such importation or exportation shall be granted without modification or delay. 

(d) Except as specifically provided in this Act, nothing in this 

Act affects the rights of States under— 

(1) the Coastal Zone Management Act of 1972 (16 U.S.C. 

1451 et seq.); 

(2) the Clean Air Act (42 U.S.C. 7401 et seq.); or 

(3) the Federal Water Pollution Control Act (33 U.S.C. 

1251 et seq.). 

(e)(1) The Commission shall have the exclusive authority to approve or deny an application for the siting, construction, expansion, 

or operation of an LNG terminal. Except as specifically provided in 

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ble law related to any Federal agency’s authorities or responsibilities related to LNG terminals. 

(2) Upon the filing of any application to site, construct, expand, 

or operate an LNG terminal, the Commission shall— 

(A) set the matter for hearing; 

(B) give reasonable notice of the hearing to all interested 

persons, including the State commission of the State in which 

the LNG terminal is located and, if not the same, the Governor-appointed State agency described in section 3A; 

(C) decide the matter in accordance with this subsection; 

and 

(D) issue or deny the appropriate order accordingly. 

(3)(A) Except as provided in subparagraph (B), the Commission 

may approve an application described in paragraph (2), in whole or 

part, with such modifications and upon such terms and conditions 

as the Commission find necessary or appropriate. 

(B) Before January 1, 2015, the Commission shall not— 

(i) deny an application solely on the basis that the applicant proposes to use the LNG terminal exclusively or partially 

for gas that the applicant or an affiliate of the applicant will 

supply to the facility; or 

(ii) condition an order on— 

(I) a requirement that the LNG terminal offer service 

to customers other than the applicant, or any affiliate of 

the applicant, securing the order; 

(II) any regulation of the rates, charges, terms, or conditions of service of the LNG terminal; or 

(III) a requirement to file with the Commission schedules or contracts related to the rates, charges, terms, or 

conditions of service of the LNG terminal. 

(C) Subparagraph (B) shall cease to have effect on January 1, 

2030. 

(4) An order issued for an LNG terminal that also offers service to customers on an open access basis shall not result in subsidization of expansion capacity by existing customers, degradation 

of service to existing customers, or undue discrimination against 

existing customers as to their terms or conditions of service at the 

facility, as all of those terms are defined by the Commission. 

(f)(1) In this subsection, the term ‘‘military installation’’— 

(A) means a base, camp, post, range, station, yard, center, 

or homeport facility for any ship or other activity under the jurisdiction of the Department of Defense, including any leased 

facility, that is located within a State, the District of Columbia, 

or any territory of the United States; and 

(B) does not include any facility used primarily for civil 

works, rivers and harbors projects, or flood control projects, as 

determined by the Secretary of Defense. 

(2) The Commission shall enter into a memorandum of understanding with the Secretary of Defense for the purpose of ensuring 

that the Commission coordinate and consult with the Secretary of 

Defense on the siting, construction, expansion, or operation of liquefied natural gas facilities that may affect an active military installation. 


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5 Sec. 3A NATURAL GAS ACT 

(3) The Commission shall obtain the concurrence of the Secretary of Defense before authorizing the siting, construction, expansion, or operation of liquefied natural gas facilities affecting the 

training or activities of an active military installation. 

ø15 U.S.C. 717b¿ 

STATE AND LOCAL SAFETY CONSIDERATIONS

SEC. 3A. (a) The Commission shall promulgate regulations on 

the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.) pre-filing process within 60 days after the date of enactment 

of this section. An applicant shall comply with pre-filing process required under the National Environmental Policy Act of 1969 prior 

to filing an application with the Commission. The regulations shall 

require that the pre-filing process commence at least 6 months 

prior to the filing of an application for authorization to construct 

an LNG terminal and encourage applicants to cooperate with State 

and local officials. 

(b) The Governor of a State in which an LNG terminal is proposed to be located shall designate the appropriate State agency for 

the purposes of consulting with the Commission regarding an application under section 3. The Commission shall consult with such 

State agency regarding State and local safety considerations prior 

to issuing an order pursuant to section 3. For the purposes of this 

section, State and local safety considerations include— 

(1) the kind and use of the facility; 

(2) the existing and projected population and demographic 

characteristics of the location; 

(3) the existing and proposed land use near the location; 

(4) the natural and physical aspects of the location; 

(5) the emergency response capabilities near the facility location; and 

(6) the need to encourage remote siting. 

(c) The State agency may furnish an advisory report on State 

and local safety considerations to the Commission with respect to 

an application no later than 30 days after the application was filed 

with the Commission. Before issuing an order authorizing an applicant to site, construct, expand, or operate an LNG terminal, the 

Commission shall review and respond specifically to the issues 

raised by the State agency described in subsection (b) in the advisory report. This subsection shall apply to any application filed 

after the date of enactment of the Energy Policy Act of 2005. A 

State agency has 30 days after such date of enactment to file an 

advisory report related to any applications pending at the Commission as of such date of enactment. 

(d) The State commission of the State in which an LNG terminal is located may, after the terminal is operational, conduct 

safety inspections in conformance with Federal regulations and 

guidelines with respect to the LNG terminal upon written notice to 

the Commission. The State commission may notify the Commission 

of any alleged safety violations. The Commission shall transmit information regarding such allegations to the appropriate Federal 

agency, which shall take appropriate action and notify the State 

commission. 


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Sec. 4 NATURAL GAS ACT 6 

(e)(1) In any order authorizing an LNG terminal the Commission shall require the LNG terminal operator to develop an Emergency Response Plan. The Emergency Response Plan shall be prepared in consultation with the United States Coast Guard and 

State and local agencies and be approved by the Commission prior 

to any final approval to begin construction. The Plan shall include 

a cost-sharing plan. 

(2) A cost-sharing plan developed under paragraph (1) shall include a description of any direct cost reimbursements that the applicant agrees to provide to any State and local agencies with responsibility for security and safety— 

(A) at the LNG terminal; and 

(B) in proximity to vessels that serve the facility. 

ø15 U.S.C. 717b–1¿ 

RATES AND CHARGES; SCHEDULES; SUSPENSION OF NEW RATES

SEC. 4. (a) All rates and charges made, demanded, or received 

by any natural-gas company for or in connection with the transportation or sale of natural gas subject to the jurisdiction of the Commission, and all rules and regulations affecting or pertaining to 

such rates or charges, shall be just and reasonable, and any such 

rate or charge that is not just and reasonable is hereby declared 

to be unlawful. 

(b) No natural-gas company shall, with respect to any transportation or sale of natural gas subject to the jurisdiction of the 

Commission, (1) make or grant any undue preference or advantage 

to any person or subject any person to any undue prejudice or disadvantage, or (2) maintain any unreasonable difference in rates, 

charges, service, facilities, or in any other respect, either as between localities or as between classes of service. 

(c) Under such rules and regulations as the Commission may 

prescribe, every natural-gas company shall file with the Commission, within such time (not less than sixty days from the date this 

act takes effect) and in such form as the Commission may designate, and shall keep open in convenient form and place for public 

inspection, schedules showing all rates and charges for any transportation or sale subject to the jurisdiction of the Commission, and 

the classifications, practices, and regulations affecting such rates 

and charges, together with all contracts which in any manner affect or relate to such rates, charges, classifications, and services. 

(d) Unless the Commission otherwise orders, no change shall 

be made by any natural-gas company in any such rate, charge, 

classification, or service, or in any rule, regulations, or contract relating thereto, except after thirty days’ notice to the Commission 

and to the public. Such notice shall be given by filing with the 

Commission and keeping open for public inspection new schedules 

stating plainly the change or changes to be made in the schedule 

or schedules then in force and the time when the change or 

changes will go into effect. The Commission, for good cause shown, 

may allow changes to take effect without requiring the thirty days’ 

notice herein provided for by an order specifying the changes so to 

be made and the time when they shall take effect and the manner 

in which they shall be filed and published. 


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(e) Whenever any such new schedule is filed the Commission 

shall have authority, either upon complaint of any State, municipality, State commission, or gas distributing company or upon its 

own initiative without complaint, at once, and if it so orders, without answer or formal pleading by the natural-gas company, but 

upon reasonable notice, to enter upon a hearing concerning the 

lawfulness of such rate, charge, classification, or service; and, pending such hearing and the decision thereon, the Commission, upon 

filing with such schedules and delivering to the natural-gas company affected thereby a statement in writing of its reasons for such 

suspension, may suspend the operation of such schedule and defer 

the use of such rate, charge, classification, or service, but not for 

a longer period than five months beyond the time when it would 

otherwise go into effect; and after full hearings, either completed 

before or after the rate, charge, classification, or service goes into 

effect, the Commission may make such orders with reference thereto as would be proper in a proceeding initiated after it had become 

effective. If the proceeding has not been concluded and an order 

made at the expiration of the suspension period, on motion of the 

natural-gas company making the filing, the proposed change of 

rate, charge, classification, or service shall go into effect. Where increased rates or charges are thus made effective, the Commission 

may, by order, require the natural-gas company to furnish a bond, 

to be approved by the Commission, to refund any amounts ordered 

by the Commission, to keep accurate accounts in detail of all 

amounts received by reason of such increase, specifying by whom 

and in whose behalf such amounts were paid, and, upon completion 

of the hearing and decision, to order such natural-gas company to 

refund, with interest, the portion of such increased rates or charges 

by its decision found not justified. At any hearing involving a rate 

or charge sought to be increased, the burden of proof to show that 

the increased rate or charge is just and reasonable shall be upon 

the natural-gas company, and the Commission shall give to the 

hearing and decision of such questions preference over other questions pending before it and decide the same as speedily as possible. 

(f)(1) In exercising its authority under this Act or the Natural 

Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the Commission 

may authorize a natural gas company (or any person that will be 

a natural gas company on completion of any proposed construction) 

to provide storage and storage-related services at market-based 

rates for new storage capacity related to a specific facility placed 

in service after the date of enactment of the Energy Policy Act of 

2005, notwithstanding the fact that the company is unable to demonstrate that the company lacks market power, if the Commission 

determines that— 

(A) market-based rates are in the public interest and necessary to encourage the construction of the storage capacity in 

the area needing storage services; and 

(B) customers are adequately protected. 

(2) The Commission shall ensure that reasonable terms and 

conditions are in place to protect consumers. 

(3) If the Commission authorizes a natural gas company to 

charge market-based rates under this subsection, the Commission 


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shall review periodically whether the market-based rate is just, 

reasonable, and not unduly discriminatory or preferential. 

ø15 U.S.C. 717c¿ 

PROHIBITION ON MARKET MANIPULATION

SEC. 4A. It shall be unlawful for any entity, directly or indirectly, to use or employ, in connection with the purchase or sale of 

natural gas or the purchase or sale of transportation services subject to the jurisdiction of the Commission, any manipulative or deceptive device or contrivance (as those terms are used in section 

10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b))) in 

contravention of such rules and regulations as the Commission 

may prescribe as necessary in the public interest or for the protection of natural gas ratepayers. Nothing in this section shall be construed to create a private right of action. 

ø15 U.S.C. 717c–1¿ 

FIXING RATE AND CHARGES; DETERMINATION OF COST OF PRODUCTION

OR TRANSPORTATION

SEC. 5. (a) Whenever the Commission, after a hearing had 

upon its own motion or upon complaint of any State, municipality, 

State commission, or gas distributing company, shall find that any 

rate, charge, or classification demanded, observed, charged, or collected by any natural-gas company in connection with any transportation or sale of natural gas, subject to the jurisdiction of the 

Commission, or that any rule, regulation, practice, or contract affecting such rate, charge, or classification is unjust, unreasonable, 

unduly discriminatory, or preferential, the Commission shall determine the just and reasonable rate, charge, classification, rule, regulation, practice, or contract to be thereafter observed and in force, 

and shall fix the same by order: Provided, however, That the Commission shall have no power to order any increase in any rate contained in the currently effective schedule of such natural-gas company on file with the Commission, unless such increase is in accordance with a new schedule filed by such natural-gas company; 

but the Commission may order a decrease where existing rates are 

unjust, unduly discriminatory, preferential, otherwise unlawful, or 

are not the lowest reasonable rates. 

(b) The Commission upon its own motion, or upon the request 

of any State commission, whenever it can do so without prejudice 

to the efficient and proper conduct of its affairs, may investigate 

and determine the cost of the production or transportation of natural gas by a natural-gas company in cases where the Commission 

has no authority to establish a rate governing the transportation 

or sale of such natural gas. 

ø15 U.S.C. 717d¿ 

ASCERTAINMENT OF COST OF PROPERTY

SEC. 6. (a) The Commission may investigate and ascertain the 

actual legitimate cost of the property of every natural-gas company, 

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ing purposes, other facts which bear on the determination of such 

cost or depreciation and the fair value of such property. 

(b) Every natural-gas company upon request shall file with the 

Commission an inventory of all or any part of its property and a 

statement of the original cost thereof, and shall keep the Commission informed regarding the cost of all additions, betterments, extensions, and new construction. 

ø15 U.S.C. 717e¿ 

EXTENSION OF FACILITIES; ABANDONMENT OF SERVICE

SEC. 7. (a) Whenever the Commission, after notice and opportunity for hearing, finds such action necessary or desirable in the 

public interest, it may by order direct a natural-gas company to extend or improve its transportation facilities, to establish physical 

connection of its transportation facilities with the facilities of, and 

sell natural gas to, any person or municipality engaged or legally 

authorized to engage in the local distribution of natural or artificial 

gas to the public, and for such purpose to extend its transportation 

facilities to communities immediately adjacent to such facilities or 

to territory served by such natural-gas company, if the Commission 

finds that no undue burden will be placed upon such natural-gas 

company thereby: Provided, That the Commission shall have no authority to compel the enlargement of transportation facilities for 

such purposes, or to compel such natural-gas company to establish 

physical connection or sell natural gas when to do so would impair 

its ability to render adequate service to its customers. 

(b) No natural-gas company shall abandon all or any portion 

of its facilities subject to the jurisdiction of the Commission, or any 

service rendered by means of such facilities, without the permission 

and approval of the Commission first had and obtained, after due 

hearing, and a finding by the Commission that the available supply 

of natural gas is depleted to the extent that the continuance of 

service is unwarranted, or that the present or future public convenience or necessity permit such abandonment. 

(c)(1)(A) No natural-gas company or person which will be a 

natural-gas company upon completion of any proposed construction 

or extension shall engage in the transportation or sale of natural 

gas, subject to the jurisdiction of the Commission, or undertake the 

construction or extension of any facilities therefor, or acquire or operate any such facilities or extensions thereof, unless there is in 

force with respect to such natural-gas company a certificate of public convenience and necessity issued by the Commission authorizing such acts or operations: Provided, however, That if any such 

natural-gas company or predecessor in interest was bona fide engaged in transportation or sale of natural gas, subject to the jurisdiction of the Commission, on the effective date of this amendatory 

Act, over the route or routes or within the area for which application is made and has so operated since that time, the Commission 

shall issue such certificate without requiring further proof that 

public convenience and necessity will be served by such operation, 

and without further proceedings, if application for such certificate 

is made to the Commission within ninety days after the effective 


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date of this amendatory Act. Pending the determination of any 

such application, the continuance of such operation shall be lawful. 

(B) In all other cases the Commission shall set the matter for 

hearing and shall give such reasonable notice of the hearing thereon to all interested persons as in its judgment may be necessary 

under rules and regulations to be prescribed by the Commission; 

and the application shall be decided in accordance with the procedure provided in subsection (e) of this section and such certificate 

shall be issued or denied accordingly: Provided, however, That the 

Commission may issue a temporary certificate in cases of emergency, to assure maintenance of adequate service or to serve particular customers, without notice or hearing, pending the determination of an application for a certificate, and may by regulation 

exempt from the requirements of this section temporary acts or operations for which the issuance of a certificate will not be required 

in the public interest. 

(2) The Commission may issue a certificate of public convenience and necessity to a natural-gas company for the transportation 

in interstate commerce of natural gas used by any person for one 

or more high-priority uses, as defined, by rule, by the Commission, 

in the case of— 

(A) natural gas sold by the producer to such person; and 

(B) natural gas produced by such person. 

(d) Application for certificates shall be made in writing to the 

Commission, be verified under oath, and shall be in such form, contain such information, and notice thereof shall be served upon such 

interested parties and in such manner as the Commission shall, by 

regulation require. 

(e) Except in the cases governed by the provisos contained in 

subsection (c)(1) of this section, a certificate shall be issued to any 

qualified applicant therefor, authorizing the whole or any part of 

the operation, sale, service, construction, extension, or acquisition 

covered by the application, if it is found that the applicant is able 

and willing properly to do the acts and to perform the service proposed and to conform to the provisions of the Act and the requirements, rules, and regulations of the Commission thereunder, and 

that the proposed service, sale, operation, construction, extension, 

or acquisition, to the extent authorized by the certificate, is or will 

be required by the present or future public convenience and necessity; otherwise such application shall be denied. The Commission 

shall have the power to attach to the issuance of the certificate and 

to the exercise of the rights granted thereunder such reasonable 

terms and conditions as the public convenience and necessity may 

require. 

(f)(1) The Commission, after a hearing had upon its own motion or upon application, may determine the service areas to which 

each authorization under this section is to be limited. Within such 

service area as determined by the Commission a natural-gas company may enlarge or extend its facilities for the purpose of supplying increased market demands in such service area without further authorization; and 

(2) If the Commission has determined a service area pursuant 

to this subsection, transportation to ultimate consumers in such 

service area by the holder of such service area determination, even 


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if across State lines, shall be subject to the exclusive jurisdiction 

of the State commission in the State in which the gas is consumed. 

This section shall not apply to the transportation of natural gas to 

another natural gas company. 

(g) Nothing contained in this section shall be construed as a 

limitation upon the power of the Commission to grant certificates 

of public convenience and necessity for service of an area already 

being served by another natural-gas company. 

(h) When any holder of a certificate of public convenience and 

necessity cannot acquire by contract, or is unable to agree with the 

owner of property to the compensation to be paid for, the necessity 

right-of-way to construct, operate, and maintain a pipe line or pipe 

lines for the transportation of natural gas, and the necessary land 

or other property, in addition to right-of-way, for the location of 

compressor stations, pressure apparatus, or other stations or equipment necessary to the proper operation of such pipe line or pipe 

lines, it may acquire the same by the exercise of the right of eminent domain in the district court of the United States for the district in which such property may be located, or in the State courts. 

The practice and procedure in any action or proceeding for that 

purpose in the district court of the United States shall conform as 

nearly as may be with the practice and procedure in similar action 

or proceeding in the courts of the State where the property is situated: Provided, That the United States district courts shall only 

have jurisdiction of cases when the amount claimed by the owner 

of the property to be condemned exceeds $3,000. 

ø15 U.S.C. 717f¿ 

ACCOUNTS, RECORDS, AND MEMORANDA

SEC. 8. (a) Every natural-gas company shall make, keep, and 

preserve for such periods, such accounts, records of cost-accounting 

procedures, correspondence, memoranda, papers, books, and other 

records as the Commission may by rules and regulations prescribe 

as necessary or appropriate for purposes of the administration of 

this act: Provided, however, That nothing in this act shall relieve 

any such natural-gas company from keeping any accounts, memoranda, or records which such natural-gas company may be required 

to keep by or under authority of the laws of any State. The Commission may prescribe a system of accounts to be kept by such natural-gas companies, and may classify such natural-gas companies 

and prescribe a system of accounts for each class. The Commission, 

after notice and opportunity for hearing, may determine by order 

the accounts in which particular outlays or receipts shall be entered, charged, or credited. The burden of proof to justify every accounting entry questioned by the Commission shall be on the person making, authorizing, or requiring such entry, and the Commission may suspend a charge or credit pending submission of satisfactory proof in support thereof. 

(b) The Commission shall at all times have access to and the 

right to inspect and examine all accounts, records, and memoranda 

of natural-gas companies; and it shall be the duty of such naturalgas companies to furnish to the Commission, within such reasonable time as the Commission may order, any information with reVerDate Mar 15 2010 14:35 Feb 05, 2020 Jkt 000000 PO 00000 Frm 00011 Fmt 9001 Sfmt 9001 G:\COMP\ENOIL\NGA.BEL HOLC

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Sec. 9 NATURAL GAS ACT 12 

spect thereto which the Commission may by order require, including copies of maps, contracts, reports of engineers, and other data, 

records, and papers, and to grant to all agents of the Commission 

free access to its property and its accounts, records, and memoranda when requested so to do. No member, officer, or employee of 

the Commission shall divulge any fact or information which may 

come to his knowledge during the course of examination of books, 

records, data, or accounts, except insofar as he may be directed by 

the Commission or by a court. 

(c) The books, accounts, memoranda, and records of any person 

who controls directly or indirectly a natural-gas company subject to 

the jurisdiction of the Commission and of any other company controlled by such person, insofar as they relate to transactions with 

or the business of such natural-gas company, shall be subject to examination on the order of the Commission. 

ø15 U.S.C. 717g¿ 

RATES OF DEPRECIATION

SEC. 9. (a) The Commission may, after hearing, require natural-gas companies to carry proper and adequate depreciation and 

amortization accounts in accordance with such rules, regulations, 

and forms of account as the Commission may prescribe. The Commission may from time to time ascertain and determine, and by 

order fix, the proper and adequate rates of depreciation and amortization of the several classes of property of each natural-gas company used or useful in the production, transportation, or sale of 

natural gas. Each natural-gas company shall conform its depreciation and amortization accounts to the rates so ascertained, determined, and fixed. No natural-gas company subject to the jurisdiction of the Commission shall charge to operating expenses and depreciation or amortization charges on classes of property other than 

those prescribed by the Commission, or charge with respect to any 

class of property a percentage of depreciation or amortization other 

than that prescribed therefor by the Commission. No such naturalgas company shall in any case include in any form under its operating or other expenses any depreciation, amortization, or other 

charge or expenditure included elsewhere as a depreciation or amortization charge or otherwise under its operating or other expenses. Nothing in this section shall limit the power of a State 

commission to determine in the exercise of its jurisdiction, with respect to any natural-gas company, the percentage rates of depreciation or amortization to be allowed, as to any class of property of 

such natural-gas company, or the composite depreciation or amortization rate, for the purpose of determining rates of charges. 

(b) The Commission, before prescribing any rules or requirements as to accounts, records, or memoranda, or as to depreciation 

or amortization rates, shall notify each State commission having jurisdiction with respect to any natural-gas company involved and 

shall give reasonable opportunity to each such commission to 

present its views and shall receive and consider such views and 

recommendations. 

ø15 U.S.C. 717h¿ 


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PERIODIC AND SPECIAL REPORTS

SEC. 10. (a) Every natural-gas company shall file with the 

Commission such annual and other periodic or special reports as 

the Commission may by rules and regulations or order prescribe as 

necessary or appropriate to assist the Commission in the proper 

administration of this act. The Commission may prescribe the manner and form in which such reports shall be made, and require 

from such natural-gas companies specific answers to all questions 

upon which the Commission may need information. The Commission may require that such reports shall include, among other 

things, full information as to assets and liabilities, capitalization, 

investment and reduction thereof, gross receipts, interest due and 

paid, depreciation, amortization, and other reserves, cost of facilities, cost of maintenance and operation of facilities for the production, transportation, or sale of natural gas, cost of renewal and replacement of such facilities, transportation, delivery, use, and sale 

of natural gas. The Commission may require any such natural-gas 

company to make adequate provision for currently determining 

such costs and other facts. Such reports shall be made under oath 

unless the Commission otherwise specifies. 

(b) It shall be unlawful for any natural-gas company willfully 

to hinder, delay, or obstruct the making, filing, or keeping of any 

information, document, report, memorandum, record, or account required to be made, filed, or kept under this act or any rule, regulation, or order thereunder. 

ø15 U.S.C. 717i¿ 

STATE COMPACTS; REPORTS ON

SEC. 11. (a) In case two or more States propose to the Congress 

compacts dealing with the conservation, production, transportation, 

or distribution of natural gas it shall be the duty of the Commission to assemble pertinent information relative to the matters covered in any such proposed compact, to make public and to report 

to the Congress information so obtained, together with such recommendations for further legislation as may appear to be appropriate or necessary to carry out the purposes of such proposed compact and to aid in the conservation of natural-gas resources within 

the United States and in the orderly, equitable, and economic production, transportation, and distribution of natural gas. 

(b) It shall be the duty of the Commission to assemble and 

keep current pertinent information relative to the effect and operation of any compact between two or more States heretofore or 

hereafter approved by the Congress, to make such information public, and to report to the Congress, from time to time, the information so obtained together with such recommendations as may appear to be appropriate or necessary to promote the purposes of 

such compact. 

(c) In carrying out the purposes of this act, the Commission 

shall, so far as practicable, avail itself of the services, records, reports, and information of the executive departments and other 

agencies of the Government, and the President may, from time to 

time, direct that such services and facilities be made available to 

the Commission. 


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As Amended Through P.L. 109-58, Enacted August 8, 2005
Sec. 12 NATURAL GAS ACT 14 

ø15 U.S.C. 717j¿ 

OFFICIALS DEALING IN SECURITIES

SEC. 12. It shall be unlawful for any officer or director of any 

natural-gas company to receive for his own benefit, directly or indirectly, any money or thing of value in respect to the negotiation, 

hypothecation, or sale by such natural-gas company of any security 

issued, or to be issued, by such natural-gas company, or to share 

in any of the proceeds thereof, or to participate in the making or 

paying of any dividends, other than liquidating dividends, of such 

natural-gas company from any funds properly included in capital 

account. 

ø15 U.S.C. 717k¿ 

COMPLAINTS

SEC. 13. Any State, municipality, or State commission complaining of anything done or omitted to be done by any natural-gas 

company in contravention of the provisions of this act may apply 

to the Commission by petition, which shall briefly state the facts, 

whereupon a statement of the complaint thus made shall be forwarded by the Commission to such natural-gas company, which 

shall be called upon to satisfy the complaint or to answer the same 

in writing within a reasonable time to be specified by the Commission. 

ø15 U.S.C. 717l¿ 

INVESTIGATIONS BY COMMISSION; ATTENDANCE OF WITNESSES; 

DEPOSITIONS

SEC. 14. (a) The Commission may investigate any facts, conditions, practices, or matters which it may find necessary or proper 

in order to determine whether any person has violated or is about 

to violate any provision of this act or any rule, regulation, or order 

thereunder, or to aid in the enforcement of the provisions of this 

act or in prescribing rules or regulations thereunder, or in obtaining information to serve as a basis for recommending further legislation to the Congress. The Commission may permit any person to 

file with it a statement in writing, under oath or otherwise, as it 

shall determine, as to any or all facts and circumstances concerning a matter which may be the subject of investigation. The 

Commission, in its discretion, may publish in the manner authorized by section 312 of the Federal Power Act, and make available 

to State commissions and municipalities, information concerning 

any such matter. 

(b) The Commission may, after hearing, determine the adequacy or inadequacy of the gas reserves held or controlled by any 

natural-gas company, or by anyone on its behalf, including its 

owned or leased properties or royalty contracts; and may also, after 

hearing, determine the propriety and reasonableness of the inclusion in operating expenses, capital, or surplus of all delay rentals 

or other forms of rental or compensation for unoperated lands and 

leases. For the purposes of such determinations, the Commission 

may require any natural-gas company to file with the Commission 


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15 Sec. 14 NATURAL GAS ACT 

true copies of all its lease and royalty agreements with respect to 

such gas reserves. 

(c) For the purpose of any investigation or any other proceeding under this act, any member of the Commission, or any officer designated by it, is empowered to administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, 

and require the production of any books, papers, correspondence, 

memoranda, contracts, agreements, or other records which the 

Commission finds relevant or material to the inquiry. Such attendance of witnesses and the production of any such records may be 

required from any place in the United States or at any designated 

place of hearing. Witnesses summoned by the Commission to appear before it shall be paid the same fees and mileage that are paid 

witnesses in the courts of the United States. 

(d) In case of contumacy by, or refusal to obey a subpena 

issued to, any person, the Commission may invoke the aid of any 

court of the United States within the jurisdiction of which such investigation or proceeding is carried on, or where such person resides or carries on business in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, contracts, agreements, and other records. Such 

court may issue an order requiring such person to appear before 

the Commission or member or officer designated by the Commission, there to produce records, if so ordered, or to give testimony 

touching the matter under investigation or in question; and any 

failure to obey such order of the court may be punished by such 

court as a contempt thereof. All process in any such case may be 

served in the judicial district whereof such person is an inhabitant 

or wherever he may be found or may be doing business. Any person 

who willfully shall fail or refuse to attend and testify or to answer 

any lawful inquiry to to produce books, papers, correspondence, 

memoranda, contracts, agreements, or other records, if in his or its 

power so to do, in obedience to the subpena of the Commission, 

shall be guilty of a misdemeanor and upon conviction shall be subject to a fine of not more than $1,000 or to imprisonment for a term 

of not more than one year, or both. 

(e) The testimony of any witness may be taken at the instance 

of a party, in any proceeding or investigation pending before the 

Commission, by deposition at any time after the proceeding is at 

issue. The Commission may also order testimony to be taken by 

deposition in any proceeding or investigation pending before it at 

any stage of such proceeding or investigation. Such depositions 

may be taken before any person authorized to administer oaths not 

being of counsel or attorney to either of the parties, nor interested 

in the proceeding or investigation. Reasonable notice must first be 

given in writing by the party or his attorney proposing to take such 

deposition to the opposite party or his attorney of record, as either 

may be nearest, which notice shall state the name of the witness 

and the time and place of the taking of his deposition. Any person 

may be compelled to appear and depose, and to produce documentary evidence, in the same manner as witnesses may be compelled 

to appear and testify and produce documentary evidence before the 

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rection, and shall, after it has been reduced to writing, be subscribed by the deponent. 

(f) If a witness whose testimony may be desired to be taken by 

deposition be in a foreign country, the deposition may be taken before an officer or person designated by the Commission, or agreed 

upon by the parties by stipulation in writing to be filed with the 

Commission. All depositions must be promptly filed with the Commission. 

(g) Witnesses whose depositions are taken as authorized in this 

act, and the person or officer taking the same, shall be entitled to 

the same fees as are paid for like services in the courts of the 

United States. 

ø15 U.S.C. 717m¿ 

PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE

SEC. 15. (a) In this section, the term ‘‘Federal authorization’’— 

(1) means any authorization required under Federal law 

with respect to an application for authorization under section 

3 or a certificate of public convenience and necessity under section 7; and 

(2) includes any permits, special use authorizations, certifications, opinions, or other approvals as may be required under 

Federal law with respect to an application for authorization 

under section 3 or a certificate of public convenience and necessity under section 7. 

(b) DESIGNATION AS LEAD AGENCY.— 

(1) IN GENERAL.—The Commission shall act as the lead 

agency for the purposes of coordinating all applicable Federal 

authorizations and for the purposes of complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.). 

(2) OTHER AGENCIES.—Each Federal and State agency considering an aspect of an application for Federal authorization 

shall cooperate with the Commission and comply with the 

deadlines established by the Commission. 

(c) SCHEDULE.— 

(1) COMMISSION AUTHORITY TO SET SCHEDULE.—The Commission shall establish a schedule for all Federal authorizations. In establishing the schedule, the Commission shall— 

(A) ensure expeditious completion of all such proceedings; and 

(B) comply with applicable schedules established by 

Federal law. 

(2) FAILURE TO MEET SCHEDULE.—If a Federal or State administrative agency does not complete a proceeding for an approval that is required for a Federal authorization in accordance with the schedule established by the Commission, the applicant may pursue remedies under section 19(d). 

(d) CONSOLIDATED RECORD.—The Commission shall, with the 

cooperation of Federal and State administrative agencies and officials, maintain a complete consolidated record of all decisions made 

or actions taken by the Commission or by a Federal administrative 

agency or officer (or State administrative agency or officer acting 


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under delegated Federal authority) with respect to any Federal authorization. Such record shall be the record for— 

(1) appeals or reviews under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), provided that the 

record may be supplemented as expressly provided pursuant to 

section 319 of that Act; or 

(2) judicial review under section 19(d) of decisions made or 

actions taken of Federal and State administrative agencies and 

officials, provided that, if the Court determines that the record 

does not contain sufficient information, the Court may remand 

the proceeding to the Commission for further development of 

the consolidated record. 

(e) Hearings under this act may be held before the Commission, any member or members thereof, or any representative of the 

Commission designated by it, and appropriate records thereof shall 

be kept. In any proceeding before it, the Commission in accordance 

with such rules and regulations as it may prescribe, may admit as 

a party any interested State, State commission, municipality or 

any representative of interested consumers or security holders, or 

any competitor of a party to such proceeding, or any other person 

whose participation in the proceeding may be in the public interest. 

(f) All hearings, investigations, and proceedings under this act 

shall be governed by rules of practice and procedure to be adopted 

by the Commission, and in the conduct thereof the technical rules 

of evidence need not be applied. No informality in any hearing, investigation, or proceeding or in the manner of taking testimony 

shall invalidate any order, decision, rule, or regulation issued 

under the authority of this act. 

ø15 U.S.C. 717n¿ 

ADMINISTRATION POWERS OF COMMISSION; RULES, REGULATIONS, AND

ORDERS

SEC. 16. The Commission shall have power to perform any and 

all acts, and to prescribe, issue, make, amend, and rescind such orders, rules, and regulations as it may find necessary or appropriate 

to carry out the provisions of this act. Among other things, such 

rules and regulations may define accounting, technical, and trade 

terms used in this act; and may prescribe the form or forms of all 

statements, declarations, applications, and reports to be filed with 

the Commission, the information which they shall contain, and the 

time within which they shall be filed. Unless a different date is 

specified therein, rules and regulations of the Commission shall be 

effective thirty days after publication in the manner which the 

Commission shall prescribe. Orders of the Commission shall be effective on the date and in the manner which the Commission shall 

prescribe. For the purposes of its rules and regulations, the Commission may classify persons and matters within its jurisdiction 

and prescribe different requirements for different classes of persons 

or matters. All rules and regulations of the Commission shall be 

filed with its secretary and shall be kept open in convenient form 

for public inspection and examination during reasonable business 

hours. 

ø15 U.S.C. 717o¿ 


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Sec. 17 NATURAL GAS ACT 18 

USE OF JOINT BOARDS; COOPERATION WITH STATE COMMISSIONS

SEC. 17. (a) The Commission may refer any matter arising in 

the administration of this act to a board to be composed of a member or members, as determined by the Commission, from the State 

or each of the States affected or to be affected by such matter. Any 

such board shall be vested with the same power and be subject to 

the same duties and liabilities as in the case of a member of the 

Commission when designated by the Commission to hold any hearings. The action of such board shall have such force and effect and 

its proceedings shall be conducted in such manner as the Commission shall by regulations prescribe. The Board shall be appointed 

by the Commission from persons nominated by the State commission of each State affected, or by the Governor of such State if 

there is no State commission. Each State affected shall be entitled 

to the same number of representatives on the board unless the 

nominating power of such State waives such right. The Commission shall have discretion to reject the nominee from any State, but 

shall thereupon invite a new nomination from that State. The 

members of a board shall receive such allowances for expenses as 

the Commission shall provide. The Commission may, when in its 

discretion sufficient reason exists therefor, revoke any reference to 

such a board. 

(b) The Commission may confer with any State commission regarding rate structures, costs, accounts, charges, practices, classifications, and regulations of natural-gas companies; and the Commission is authorized, under such rules and regulations as it shall 

prescribe, to hold joint hearings with any State commission in connection with any matter with respect to which the Commission is 

authorized to act. The Commission is authorized in the administration of this act to avail itself of such cooperation, services, records, 

and facilities as may be afforded by any State commission. 

(c) The Commission shall make available to the several State 

commissions such information and reports as may be of assistance 

in State regulation of natural-gas companies. Whenever the Commission can do so without prejudice to the efficient and proper conduct of its affairs, it may, upon request from a State commission, 

make available to such State commission as witnesses any of its 

trained rate, valuation, or other experts, subject to reimbursement 

of the compensation and traveling expenses of such witnesses. All 

sums collected hereunder shall be credited to the appropriation 

from which the amounts were expended in carrying out the provisions of this subsection. 

ø15 U.S.C. 717p¿ 

APPOINTMENT OF OFFICERS AND EMPLOYEES

SEC. 18. The Commission is authorized to appoint and fix the 

compensation of such officers, attorneys, examiners, and experts as 

may be necessary for carrying out its functions under this act, 

without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United 

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19 Sec. 19 NATURAL GAS ACT 

rying out such functions and fix their salaries in accordance with 

the Classification Act of 1923, as amended. 

ø15 U.S.C. 717q¿ 

REHEARING; COURT REVIEW OF ORDERS

SEC. 19. (a) Any person, State, municipality, or State commission aggrieved by an order issued by the Commission in a proceeding under this act to which such person, State, municipality, 

or State commission is a party may apply for a rehearing within 

thirty days after the issuance of such order. The application for rehearing shall set forth specifically the ground or grounds upon 

which such application is based. Upon such application the Commission shall have power to grant or deny rehearing or to abrogate 

or modify its order without further hearing. Unless the Commission 

acts upon the application for rehearing within thirty days after it 

is filed, such application may be deemed to have been denied. No 

proceeding to review any order of the Commission shall be brought 

by any person unless such person shall have made application to 

the Commission for a rehearing thereon. Until the record in a proceeding shall have been filed in a court of appeals, as provided in 

subsection (b), the Commission may at any time, upon reasonable 

notice and in such manner as it shall deem proper, modify or set 

aside, in whole or in part, any finding or order made or issued by 

it under the provisions of this Act. 

(b) Any party to a proceeding under this act aggrieved by an 

order issued by the Commission in such proceeding may obtain a 

review of such order in the circuit court of appeals of the United 

States for any circuit wherein the natural gas company to which 

the order relates is located or has its principal place of business, 

or in the United States Court of Appeals for the District of Columbia, by filing in such court, within sixty days after the order of the 

Commission upon the application for rehearing, a written petition 

praying that the order of the Commission be modified or set aside 

in whole or in part. A copy of such petition shall forthwith be 

transmitted by the clerk of the court to any member of the Commission and thereupon the Commission shall file with the court the 

record upon which the order complained of was entered, as provided in section 2112 of title 28, United States Code. Upon the filing of such petition such court shall have jurisdiction, which upon 

the filing of the record with it shall be exclusive, to affirm, modify, 

or set aside such order in whole or in part. No objection to the 

order of the Commission shall be considered by the court unless 

such objection shall have been urged before the Commission in the 

application for rehearing unless there is reasonable ground for failure to do so. The finding of the Commission as to the facts, if supported by substantial evidence, shall be conclusive. If any party 

shall apply to the court for leave to adduce additional evidence, and 

shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for failure to adduce such evidence in the proceedings before the Commission, the court may order such additional evidence to be taken before the Commission and to be adduced upon the hearing in such 

manner and upon such terms and conditions as to the court may 


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Sec. 19 NATURAL GAS ACT 20 

seem proper. The Commission may modify its findings as to the 

facts by reason of the additional evidence to taken, and it shall file 

with the court such modified or new findings, which if supported 

by substantial evidence, shall be conclusive, and its recommendation, if any, for the modification or setting aside of the original 

order. The judgment and decree of the court, affirming, modifying, 

or setting aside, in whole or in part, any such order of the Commission, shall be final, subject to review by the Supreme Court of the 

United States upon certiorari or certification as provided in 

øformer¿ sections 239 and 240 of the Judicial Code, as amended 

(U.S.C., title 28, sec. 1254). 

(c) The filing of an application for rehearing under subsection 

(a) shall not, unless specifically ordered by the Commission, operate as a stay of the Commission’s order. The commencement of proceedings under subsection (b) of this section shall not, unless specifically ordered by the court, operate as a stay of the Commission’s 

order. 

(d) JUDICIAL REVIEW.— 

(1) IN GENERAL.—The United States Court of Appeals for 

the circuit in which a facility subject to section 3 or section 7 

is proposed to be constructed, expanded, or operated shall have 

original and exclusive jurisdiction over any civil action for the 

review of an order or action of a Federal agency (other than 

the Commission) or State administrative agency acting pursuant to Federal law to issue, condition, or deny any permit, license, concurrence, or approval (hereinafter collectively referred to as ‘‘permit’’) required under Federal law, other than 

the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 

seq.). 

(2) AGENCY DELAY.—The United States Court of Appeals 

for the District of Columbia shall have original and exclusive 

jurisdiction over any civil action for the review of an alleged 

failure to act by a Federal agency (other than the Commission) 

or State administrative agency acting pursuant to Federal law 

to issue, condition, or deny any permit required under Federal 

law, other than the Coastal Zone Management Act of 1972 (16 

U.S.C. 1451 et seq.), for a facility subject to section 3 or section 

7. The failure of an agency to take action on a permit required 

under Federal law, other than the Coastal Zone Management 

Act of 1972, in accordance with the Commission schedule established pursuant to section 15(c) shall be considered inconsistent with Federal law for the purposes of paragraph (3). 

(3) COURT ACTION.—If the Court finds that such order or 

action is inconsistent with the Federal law governing such permit and would prevent the construction, expansion, or operation of the facility subject to section 3 or section 7, the Court 

shall remand the proceeding to the agency to take appropriate 

action consistent with the order of the Court. If the Court remands the order or action to the Federal or State agency, the 

Court shall set a reasonable schedule and deadline for the 

agency to act on remand. 

(4) COMMISSION ACTION.—For any action described in this 

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solidated record of such order or action to which the appeal 

hereunder relates. 

(5) EXPEDITED REVIEW.—The Court shall set any action 

brought under this subsection for expedited consideration. 

ø15 U.S.C. 717r¿ 

ENFORCEMENT OF ACT; REGULATIONS AND ORDERS

SEC. 20. (a) Whenever it shall appear to the Commission that 

any person is engaged or about to engage in any acts or practices 

which constitute or will constitute a violation of the provisions of 

this act, or of any rule, regulation, or order thereunder, it may in 

its discretion bring an action in the proper district court of the 

United States, the District Court of the United States for the District of Columbia, or the United States courts of any Territory or 

other place subject to the jurisdiction of the United States, to enjoin such acts or practices and to enforce compliance with this act 

or any rule, regulation, or order thereunder, and upon a proper 

showing a permanent or temporary injunction or decree or restraining order shall be granted without bond. The Commission may 

transmit such evidence as may be available concerning such acts 

or practices or concerning apparent violations of the Federal antitrust laws to the Attorney General, who, in his discretion, may institute the necessary criminal proceedings. 

(b) Upon application of the Commission the district courts of 

the United States, the District Court of the United States for the 

District of Columbia, and the United States courts of any Territory 

or other place subject to the jurisdiction of the United States shall 

have jurisdiction to issue writs of mandamus commanding any person to comply with the provisions of this act or any rule, regulation, or order of the Commission thereunder. 

(c) The Commission may employ such attorneys as it finds necessary for proper legal aid and service of the Commission or its 

members in the conduct of their work, or for proper representation 

of the public interest in investigations made by it, or cases or proceedings pending before it, whether at the Commission’s own instance or upon complaint, or to appear for or represent the Commission in any case in court; and the expenses of such employment 

shall be paid out of the appropriation for the Commission. 

(d) In any proceedings under subsection (a), the court may prohibit, conditionally or unconditionally, and permanently or for such 

period of time as the court determines, any individual who is engaged or has engaged in practices constituting a violation of section 

4A (including related rules and regulations) from— 

(1) acting as an officer or director of a natural gas company; or 

(2) engaging in the business of— 

(A) the purchasing or selling of natural gas; or 

(B) the purchasing or selling of transmission services 

subject to the jurisdiction of the Commission. 

ø15 U.S.C. 717s¿ 


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As Amended Through P.L. 109-58, Enacted August 8, 2005
Sec. 21 NATURAL GAS ACT 22 

GENERAL PENALTIES

SEC. 21. (a) Any person who willfully and knowingly does or 

causes or suffers to be done any act, matter, or thing in this act 

prohibited or delared to be unlawful, or who willfully and knowingly omits or fails to do any act, matter, or thing in this act required to be done, or willfully and knowingly causes or suffers such 

omission or failure, shall, upon conviction thereof, be punished by 

a fine of not more than $1,000,000 or by imprisonment for not more 

than 5 years, or both. 

(b) Any person who willfully and knowingly violates any rule, 

regulation, restriction, condition, or order made or imposed by the 

Commission under authority of this act, shall, in addition to any 

other penalties provided by law, be punished upon conviction thereof by a fine of not exceeding $50,000 for each and every day during 

which such offense occurs. 

ø15 U.S.C. 717t¿ 

CIVIL PENALTY AUTHORITY

SEC. 22. (a) Any person that violates this Act, or any rule, regulation, restriction, condition, or order made or imposed by the 

Commission under authority of this Act, shall be subject to a civil 

penalty of not more than $1,000,000 per day per violation for as 

long as the violation continues. 

(b) The penalty shall be assessed by the Commission after notice and opportunity for public hearing. 

(c) In determining the amount of a proposed penalty, the Commission shall take into consideration the nature and seriousness of 

the violation and the efforts to remedy the violation. 

ø15 U.S.C. 717t–1¿ 

NATURAL GAS MARKET TRANSPARENCY RULES

SEC. 23. (a)(1) The Commission is directed to facilitate price 

transparency in markets for the sale or transportation of physical 

natural gas in interstate commerce, having due regard for the public interest, the integrity of those markets, fair competition, and the 

protection of consumers. 

(2) The Commission may prescribe such rules as the Commission determines necessary and appropriate to carry out the purposes of this section. The rules shall provide for the dissemination, 

on a timely basis, of information about the availability and prices 

of natural gas sold at wholesale and in interstate commerce to the 

Commission, State commissions, buyers and sellers of wholesale 

natural gas, and the public. 

(3) The Commission may— 

(A) obtain the information described in paragraph (2) from 

any market participant; and 

(B) rely on entities other than the Commission to receive 

and make public the information, subject to the disclosure 

rules in subsection (b). 

(4) In carrying out this section, the Commission shall consider 

the degree of price transparency provided by existing price publishers and providers of trade processing services, and shall rely on 


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23 Sec. 24 NATURAL GAS ACT 

such publishers and services to the maximum extent possible. The 

Commission may establish an electronic information system if it 

determines that existing price publications are not adequately providing price discovery or market transparency. 

(b)(1) Rules described in subsection (a)(2), if adopted, shall exempt from disclosure information the Commission determines 

would, if disclosed, be detrimental to the operation of an effective 

market or jeopardize system security. 

(2) In determining the information to be made available under 

this section and the time to make the information available, the 

Commission shall seek to ensure that consumers and competitive 

markets are protected from the adverse effects of potential collusion or other anticompetitive behaviors that can be facilitated by 

untimely public disclosure of transaction-specific information. 

(c)(1) Within 180 days of enactment of this section, the Commission shall conclude a memorandum of understanding with the 

Commodity Futures Trading Commission relating to information 

sharing, which shall include, among other things, provisions ensuring that information requests to markets within the respective jurisdiction of each agency are properly coordinated to minimize duplicative information requests, and provisions regarding the treatment of proprietary trading information. 

(2) Nothing in this section may be construed to limit or affect 

the exclusive jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq.). 

(d)(1) The Commission shall not condition access to interstate 

pipeline transportation on the reporting requirements of this section. 

(2) The Commission shall not require natural gas producers, 

processors, or users who have a de minimis market presence to 

comply with the reporting requirements of this section. 

(e)(1) Except as provided in paragraph (2), no person shall be 

subject to any civil penalty under this section with respect to any 

violation occurring more than 3 years before the date on which the 

person is provided notice of the proposed penalty under section 

22(b). 

(2) Paragraph (1) shall not apply in any case in which the 

Commission finds that a seller that has entered into a contract for 

the transportation or sale of natural gas subject to the jurisdiction 

of the Commission has engaged in fraudulent market manipulation 

activities materially affecting the contract in violation of section 

4A. 

ø15 U.S.C. 717t–2¿ 

JURISDICTION OF OFFENSES; ENFORCEMENT OF LIABILITIES AND

DUTIES

SEC. 24. The District Courts of the United States, the District 

Court of the United States for the District of Columbia, and the 

United States courts of any Territory or other place subject to the 

jurisdiction of the United States shall have exclusive jurisdiction of 

violations of this act or the rules, regulations, and orders thereunder, and of all suits in equity and actions at law, brought to enforce any liability or duty created by, or to enjoin any violation of, 


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As Amended Through P.L. 109-58, Enacted August 8, 2005
Sec. 25 NATURAL GAS ACT 24 

this act or any rule, regulation, or order thereunder. Any criminal 

proceeding shall be brought in the district wherein any act or 

transaction constituting the violation occurred. Any suit or action 

to enforce any liability or duty created by, or to enjoin any violation 

of, this act or any rule, regulation, or order thereunder may be 

brought in any such district or in the district wherein the defendant is an inhabitant, and process in such cases may be served 

wherever the defendant may be found. Judgments and decrees so 

rendered shall be subject to review as provided in øformer¿ sections 128 and 240 of the Judicial Code, as amended (U.S.C., title 

28, secs. 225 and 347). No costs shall be assessed against the Commission in any judicial proceeding by or against the Commission 

under this act. 

ø15 U.S.C. 717u¿ 

SEPARABILITY OF PROVISIONS

SEC. 25. If any provision of this act, or the application of such 

provision to any person or circumstance, shall be held invalid, the 

remainder of the act, and the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. 

ø15 U.S.C. 717v¿ 

SEC. 26. This act may be cited as the ‘‘Natural Gas Act.’’ 

ø15 U.S.C. 717w¿ 

NOTE.—Executive Order 10485: Providing for the performance of 

certain functions heretofore performed by the President with respect 

to electric power and natural gas facilities located on the borders of 

the United States states: 

Whereas section 202(e) of the Federal Power Act, as amended, 

49 Stat. 847 (16 U.S.C. 824a(e)), requires any person desiring to 

transmit any electric energy from the United States to a foreign 

country to obtain an order of the Federal Power Commission authorizing it to do so; and 

Whereas section 3 of the Natural Gas Act, 52 Stat. 822 (15 

U.S.C. 717b), requires any person desiring to export any natural gas 

from the United States to a foreign country or to import any natural 

gas from a foreign country to the United States to obtain an order 

from the Federal Power Commission authorizing it to do so; and 

Whereas the proper conduct of the foreign relations of the 

United States requires that executive permission be obtained for the 

construction and maintenance at the borders of the United States of 

facilities for the exportation or importation of electric energy and 

natural gas; and 

Whereas it is desirable to provide a systematic method in connection with the issuance and signing of permits for such purposes: 

Now, Therefore, by virtue of the authority vested in me as President of the United States and commander in Chief of the armed 

forces of the United States, it is hereby ordered as follows: 

SECTION 1. (a) The Federal Power Commission is hereby designated and empowered to perform the following-described functions: 


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As Amended Through P.L. 109-58, Enacted August 8, 2005
25 Sec. 26 NATURAL GAS ACT 

(1) To receive all applications for permits for the construction, 

operation, maintenance, or connection, at the borders of the United 

States, of facilities for the transmission of electric energy between 

the United States and a foreign country. 

(2) To receive all applications for permits for the construction, 

operation, maintenance, or connection, at the borders of the United 

States, of facilities for the exportation or importation of natural gas 

to or from a foreign country. 


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