An Act to authorize the President of the United States to order emergency deliveries and transportation of natural gas to deal with existing imminent shortages by providing assistance in meeting requirements for high priority uses; to provide authority for short-term emergency purchases of natural gas, and for other purposes.
PL 95-2 (S.474), enacted 02/02/1977

91 STAT. 4 
PUBLIC LAW 95-2—FEB. 2, 1977 
Feb. 2, 1977 
[S. 474] 
Emergency 
Natural Gas Act 
of 1977. 
15 use 717 note. 
15 use 717 note. 
15 use 717a. 
15 use 717w. 
15 use 717. 
Public Law 95-2 
95th Congress 
H» 
An Act 
To authorize the President of tlie United States to order emergency deliveries 
and transportation of natural gas to deal with existing or imminent shortages 
by providing assistance in meeting requirements for high-priority uses; to 
provide authority for short-term emergency purchases of natural gas; and 
for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America 
in Congress assembled, That this Act may 
be cited as the "Emergency Natural Gas Act of 1977". 
DEFINITIOXS 
SEC. 2. As used in this Act: 
(1) The term "high-priority use*'means— 
(A) use of natural gas in a residence; 
(B) use of natural gas in a commercial establishment in amounts 
of less than 50 Mcf on a peak day; or 
(C) any other use of natural gas the termination of which the 
President determines would endanger life, health, or maintenance 
of physical property. 
(2) The term "interstate pipeline" means any natural-gas company, 
as defined in section 2(6) of the Natural Gas Act, which is engaged in 
the transportation by pipeline of natural gas. 
(3) The term "intrastate pipeline" means any person (other than 
an interstate pipeline) engaged in the transportation by pipeline of 
natural gas. 
(4) The term "interstate natural gas" means natural gas (other 
than natural gas transported pursuant to a transportation certificate 
issued under 18 C.F.R. 2.79) transported by an interstate pipeline in 
a facility which is certificated under the Natural Gas Act or which 
would be required to be so certificated but for section 1 (c) of such Act. 
(5) The term "local distribution company" means any person 
(including a governmental entity) which receives natural gas for local 
distribution and resale to natural gas users. 
(6) The term "antitrust laws" means the Sherman Act (15 TJ.S.C. 1 
et seq.), the Clayton 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), and similar State 
laws. 
(7) The term "State" means any State of the United States and the 
District of Columbia. 
Natural gas 
emergency. 
15 use 717 note. 
Termination. 
PRESIDENTIAL DECLARATION 
SEC. 3. The President may declare a natural gas emergency if he 
finds that a severe natural gas shortage endangering the supply of 
natural gas for high-priority uses exists or is imminent in the United 
States or in any region thereof and that the exercise of his authorities 
under section 4 is reasonably necessary, having exhausted other reme-
dies to the maximum extent practicable, to assist in meeting require-
ments for such uses. Such emergency shall be terminated when the 
President finds that such shortages no longer exist and are no longer 
imminent. 
PUBLIC LAW 95-2—FEB. 2, 1977 
91 STAT. 5 
EMERGENCY DELIVERIES AXD TRANSPORTATION OF NATURAL GAS 
SEC. 4. (a) (1) If the President finds it necessary to assist in meet-
ing the requirements for high-priority uses of natural gas (including 
siiort-term storage replenishment or injection for protection of high-
priority uses), on the basis of a notification by the Governor of any 
State pursuant to subsection (c) or on the basis of other information 
available to the President, the President may, during a natural gas 
emergency declared under section 3, by order, require— 
(A) any interstate pipeline to make emergency deliveries of, or 
to transj^oi't, interstate natural gas to any other interstate pipeline 
or to any local distribution company served by an interstate pipe-
line for purposes of meeting such requirements; 
(B) any intrastate pipeline to transport interstate natural gas 
from any interstate pipeline to another interstate pipeline or to 
any local distribution company served by an interstate pipeline 
for purposes of meeting such requirements; or 
(C) the construction and operation by any pipeline of any 
facilities necessary to effect such deliveries or transportation. 
N
^
o such delivery or transportation may continue after April 30, 1977, 
or after the President terminates the emergency declared under sec-
tion 3, whichever is earlier. 
(2) No order may be issued under this subsection unless the Presi-
dent determines that such order will not— 
(A) create for the interstate pipeline delivering interstate 
natural gas a supply shortage which will cause such pipeline 
to be unable to meet the requirements for high-priority uses 
served, directly or indirectly, by such pipeline; 
(B) result in a disproportionate share of deliveries or curtail-
ments of natural gas experienced by such interstate pipeline when 
compared to deliveries and resulting curtailments which are expe-
rienced as a result of orders applicable to other interstate pipelines 
(as determined by the President); and 
(C) require transportation of natural gas by any pipeline in 
excess of its available transportation capacity. 
(3) In issuing such order the President shall also consider the rela-
tive availability of alternative fuel to users of the interstate pipeline 
ordered to make deliveries pursuant to this section. 
(b) Compliance by any pipeline with an order issued under sub-
section (a) shall not subject such pipeline to regulation under the 
Natural Gas Act (15 U.S.C. 717 et seq.) or to regulation as a common 
carrier under any provision of State or Federal law. No action required 
to be taken under an order issued under subsection (a) shall be subject 
to any pi'ovision of the Natural Gas Act and any such order shall 
supersede any provision of a certification, or other requirement, under 
the Natural Gas Act which is inconsistent with such order. 
(c) (1) The Governor of any State may notify the President of any 
finding by such Governor that a shortage of natural gas within such 
State, endangering the supply of natural gas for high-priority uses, 
exists or is imminent and that the State, and agencies and instru-
mentalities thereof, have exercised their authority to the fullest extent 
practicable and reasonable under the circumstances to overcome such 
shortage. 
(2) The Governor shall submit, together with any notification under 
paragraph (1), information upon which he has based his finding under 
such paragraph, including— 
(A) volumes of natural gas required to meet the requirements 
for high-priority uses in such State; 
15 u s e 717 note. 
Requirements for 
delivery by 
interstate or 
intrastate 
pipelines. 
Order, 
restrictions. 
Alternative fuel, 
availability. 
Notification of 
shortage by State 
Governor. 
91 STAT. 6 
PUBLIC LAW 95-2—FEB. 2, 1977 
Authority to 
obtain 
information. 
Compliance 
order. 
Compensation. 
Hearing; 
supplemental 
order. 
(B) information received from persons in the business of pro-
ducing, selling, transporting, or delivering natural gas in such 
State as to the volumes of natural gas available in such State; 
and 
(C) such other information as the Governor determines appro-
priate to apprise the President of emergency deliveries and 
transportation of interstate natural gas needed in such State. 
(d) The President may request that representatives of interstate 
pipelines, intrastate pipelines, local distribution companies, and other 
persons meet and provide assistance to the President in carrying out 
his authority under this section. 
(e) (1) In order to obtain information to carry out his authority 
under this Act, the President may— 
(A) sign and issue subpenas for the attendance and testimony 
of witnesses and the production of books, records, papers, and 
other documents; 
(B) require any person, by general or special order, to submit 
answers in writing to interrogatories, requests for reports or for 
other information, and such answers shall be made within such 
reasonable period, and under oath or otherwise, as the President 
may determine; and 
(C) secure, upon request, any information from any Federal 
department or executive agency. 
(2) The appropriate United States district court may, upon peti-
tion of the Attorney General at the request of the President, in the 
case of refusal to obey a subpena or order of the President issued 
under this subsection, issue an order requiring compliance therewith, 
and any failure to obey an order of the court may be punished by the 
court as a contempt thereof. 
(f) (1) If the parties to any order issued under subsection (a) fail 
to agree upon the terms of compensation for deliveries (which may 
include compensation in kind) or transportation required pursuant to 
such order, the President, after a hearing held either before or after 
such order takes effect, shall, by supplemental order, prescribe the 
amount of compensation (which may include compensation in kind) 
to be paid for such deliveries or transportation and for any other 
expenses incurred in delivering or transporting such gas. 
(2) If, for the purpose of a supplemental order pursuant to 
paragraph (1), the party making emergency deliveries pursuant to 
subsection (a)— 
(A) indicates a preference for compensation in kind, the Presi-
dent shall direct that compensation in kind be provided by 
August 1, 1977, to the maximum extent practicable, 
(B) indicates a preference for compensation, or the President 
determines pursuant to paragraph (A) of this subsection that 
any portion thereof cannot practicably be compensated in kind, 
the President shall calculate the amount of compensation for 
deliveries of natural gas, based upon the amount required to make 
the interstate pipeline delivering such natural gas and its local 
distribution companies whole for loss of sales resulting therefrom ; 
including the actual amount paid by such interstate pipeline or 
any of its local distribution companies for the volumes of natural 
gas or higher cost gas such as synthetic natural gas which were 
needed to replace natural gas delivered pursuant to an order under 
subsection (a); and for transportation, storage, and other 
expenses, based upon reasonable costs, as determined by the 
President. 
PUBLIC LAW 95-2—FEB. 2, 1977 
91 STAT. 7 
(g) In order to effect the purposes of this Act, the President shall Delivery to high-
monitor the operation of any order made pursuant to this sectionto P™"*^ "^^''^ 
assure that natural gas delivered pursuant to this section is applied °^ y-
to high-priority uses only. 
15 use 717 note. 
ANTITRUST PROTECTIONS 
SEC. 5. (a) There shall be available as a defense for any person to 
civil or criminal action brought for violation of the antitrust laws (or 
any similar law of any State) with respect to any action taken or meet-
ing held pursuant to a request or order of the President under section 
4 (a) or (d) of this Act, if— 
(1) such action was taken or meeting held solely for the pur-
pose of complying with the President's request or order ;^ 
(2) such action was not taken for the purpose of injuring 
competition; and 
(3) such person complied with the requirements of subsection 
(b) of this section. 
Persons interposing the defense provided by this subsection shall have 
the burden of proof, except that the burden shall be on the person 
against whom the defense is asserted with respect to whether the 
actions were taken for the purpose of injuring competition. 
(b) A meeting held pursuant to a request by the President under 
section 4(d) or pursuant to an order under section 4(a) complies with 
the requirements of subsection (a) i
f
—
-
(1) there is present at such meeting a full-time Federal 
employee designated for such purposes by the Attorney General; 
(2) a full and complete record of such meeting is taken and 
deposited, together with any agreements resulting therefrom, with 
the Attorney General, who shall make it available for public 
, .j<; 
inspection and copying; 
;-- ;• 
(3) the Attorney General and the F'ederal Trade Gommission 
have the opportunity to participate from the beginning in the 
development and carrying out of agreements and actions under 
sections 4(a) and 4(d), in order to propose any alternative which 
would avoid or overcome, to the greatest extent practicable, pos- 
r 
' ' ^ 
sible anticompetitive effects while achieving substantially the 
purposes of this Act; and 
(4) such other procedures as may be specified in such request 
or order are complied with. 
EMERGENCY PURCHASES 
SEC. 6. (a) The President may authorize any interstate pipeline 15 U
S
C 717 note. 
or local distribution company served by an interstate pipeline (or class 
or category of such pipelines or companies) to contract, upon such 
terms and conditions as the President determines to be appropriate 
(including provisions respecting fair and equitable prices), for emer-
gency supplies of natural gas for delivery before August 1,1977— 
(1) from any producer of natural gas (other than a producer 
";. ? . 
who is affiliated with the purchaser as determined by the Presi-
dent) if (A) such natural gas is not produced from the Outer 
Continental Shelf and (B) the sale or transportation of such gas 
was not, immediately before the date on which such contract was 
entered into, certificated under the JS'atural Gas Act, or 
15 USC 717w. 
(2) from any intrastate pipeline, local distribution company, 
or other person (other than in interstate pipeline or a producer 
of natural gas). 
91 STAT. 8 
PUBLIC LAW 95-2—FEB. 2, 1977 
Emergency 
purchase 
contract; court 
approval. 
15 u s e 717w. 
"Outer 
Continental 
Shelf." 
The President may not authorize any emergency purchase contract 
under this subsection for emergency supplies of natural gas for sale 
and delivery from any intrastate pipeline which is operating under 
court supervision as of January 1,1977, unless the court approves. 
(b) (1) The provisions of the Natural Gas Act shall not apply— 
(A) to any sale of natural gas to an interstate pipeline or local 
distribution company under the authority of subsection (a) or to 
any transportation by an intrastate pipeline in connection with 
any such sale; or 
(B) to any natural gas company (within the meaning of the 
Natural Gas Act) solely by reason of any such sale or trans-
portation. 
(2) In exercising its authority under the Natural Gas Act, the 
Federal Power Commission shall not disallow, in whole or in part, 
recovery by any interstate pipeline, through the rates and charges 
made, demanded, or received by such pipeline, the amounts actually 
paid by it for natural gas purchased, transported, or other costs 
incurred pursuant to subsection (a). 
(c) (1) The President may, by order, require any pipeline to trans-
port such natural gas, and to construct and operate such facilities for 
transportation of natural gas, as may be necessary to carry out con-
tracts authorized under subsection (a). The costs of any such required 
construction shall be paid by the party receiving such natural gas. No 
such order shall require any pipeline to transport any natural gas in 
excess of such pipeline's available capacity. 
(2) Compliance by any pipeline with any order under this subsec-
tion shall not subject such pipeline to regulation under the Natural 
Gas Act or to regulation as a common carrier under any provision of 
State law. 
(d) As used in this section, the term "Outer Continental Shelf" has 
the same meaning as such term has under section 2 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331). 
ADJUSTMENT IN CHARGES FOR LOCAL DISTRIBUTION COMPANIES 
15 use 717 note. 
SEC. 7. Compensation received by an interstate pipeline pursuant to 
section 4 in excess of the amount such pipeline would have charged 
its local distribution companies shall be credited to such local distribu-
tion companies in proportion to their share of any natural gas not 
delivered together with credits necessary to make whole any local dis-
tribution company which replaced such natural gas with higher cost 
gas such as synthetic natural gas as prescribed in section 4(f) (2) (B). 
.. _: 
Compensation paid by an interstate pipeline for deliveries or emer-
*
'
*
^
" ' 
' 
gency purchases of natural gas pursuant to section 4 or section 6 shall 
be charged to such interstate pipeline's local distribution companies in 
proportion to their share of such natural gas deliveries or purchases. 
R E L A T I O N S H I P TO NATURAL GAS ACT 
15 u s e 717 note. 
15 u s e 717w. 
SEC. 8. Except as expressly provided in this Act, nothing contained 
in this Act shall be interpreted to change, modify, or otherwise affect 
rules, regulations, or other regulatory requirements or procedures of 
the Federal Power Commission pursuant to the provisions of the 
Natural Gas Act. 
EFFECT OF CERTAIN CONTRACTUAL OBLIGATIONS 
15 use 717 note. 
SEC. 9. (a) There shall be available as a defense to any action 
brought for breach of contract under Federal or State law arising out 
PUBLIC LAW 95-2—FEB. 2, 1977 
91 STAT. 9 
of any act or omission that such act was taken or that such omission 
occurred for purposes of complying with any order issued under 
section 4(a). 
(b) Any contractual provision— 
(1) proliibiting the sale or commingling of natural gas subject 
to such contract with natural gas subject to the provisions of the 
Natural Gas Act, or 
(2) terminating any obligation under any such contract as a 
result of such sale or commingling, 
is hereby declared against public policy and unenforceable with 
respect to such natural gas if an order under section 4(a) or an 
authorization under section 6(a) applies to the delivery, transporta-
tion, or contract for supplies of such natural gas. 
(c) The amounts and prices of any natural gas purchases pursuant 
to an order under section 4(a), an authorization under section 6(a), 
or a contract entered into pursuant to 18 C.F.R. 2.68 after the date 
of the enactment of this Act and before August 1, 1977, shall not be 
taken into account for purposes of any contractual provision which 
determines the price of any natural gas (or terminates the contract 
for the sale of natural gas) on the basis of eales of other natural gas. 
Prohibition of 
sale or 
commingling of 
natural gas. 
ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW 
SEC. 10. (a) Subchapter II of chapter 5 of title 5 of the United States 
Code (other than sections 554, 556, and 557 thereof) shall apply to 
orders and other actions under this Act. 
(b) Except with respect to enforcement of orders or subpenas under 
section 4(e), the Temporary Emergency Court of Appeals, estab-
lished pursuant to section 211(b) of the Economic Stabilization Act 
of 1970, as amended, shall have exclusive original jurisdiction to 
review all civil cases and controversies under this Act, including any 
order issued, or other action taken, under this Act. The Temporary 
Emergency Court of Appeals shall have exclusive jurisdiction of all 
appeals from the district courts of the United States in cases and con-
troversies arising under section 4(e) of this Act; such appeals shall be 
taken by the filing of a notice of appeal with the Temporary Emer-
gency Court of Appeals within thirty days of the entry of judgment 
by the district court. 
(c) Prior to a final judgment, no court shall have jurisdiction to 
grant any injunctive relief to stay or defer the implementation of any 
order issued, or action taken, by the President under this Act. 
15 use 717 note. 
5 use 551. 
12 use 1904 
note. 
Filing of notice of 
appeal. 
ENFORCEMENT 
SEC. 11. (a) Any person who violates an order or supplemental 15 USC 717 note, 
order issued under section 4 or an order under section 6(c) shall be 
subject to a civil penalty of not more than $25,000 for each violation 
of such order. Each day of violation shall constitute a separate offense. 
(b) Any person who willfully violates an order or supplemental 
order issued under section 4 or an order under section 6(c) shall be 
fined not more than $50,000 for each violation of such order. Each 
day of violation shall constitute a separate violation. 
(c) Whenever it appears to the President that any individual or 
organization has engaged, is engaged, or is about to engage in acts 
or practices constituting a violation of any order issued under section 
4(a), any supplemental order issued under section 4(f), or any order 
under section 6(c), the President may request the Attorney General 
to bring a civil action to enjoin such acts or practices and, upon show-
ing, a temporary restraining order or preliminary or permanent 
91 STAT. 10 
PUBLIC LAW 95-2—FEB. 2, 1977 
Mandatory 
injunction shall be granted without bond. In any such action, the court 
injunctions. 
jj^^y a]gQ issue mandatory injunctions commanding any person to 
comply with any such order or supplemental order. 
Report to 
President. 
15 u s e 717 note. 
Report to 
Congress. 
REPORTING 
SEC. 12. (a) In issuing any order under section 4(a) or granting 
any authorization under section 6, the President shall require that 
the prices and volumes of natural gas delivered, transported, or con-
tracted for pursuant to such order or authorization shall be reported 
to him on a weekly basis and such reports shall be made available to 
the Congress. 
(b) The President shall report to Congress not later than Octo-
ber 1,1977, respecting his actions under this Act. 
DELEGATION OF AUTHORITIES 
15 use 717 note. 
SEC. 13. The President may delegate all or any portion of the author-
ity granted to him under this Act to such executive agencies (within 
the meaning of 5 U.S.C. 105) or officers of the United States as he 
determines appropriate, and may authorize such redelegation as may 
be appropriate. Except with respect to section 552 of title 5 of the 
United States Code, any officer or executive agency of the United 
States to which authority is delegated or redelegated under this Act 
^' 
shall be subject only to such procedural requirements respecting the 
exercise of such authority as the President would be subject to if 
such authority were not so delegated. 
PREEMPTION OF INCONSISTENT STATE OR LOCAL ACTION 
15 use 717 note. 
SEC. 14. Any order issued pursuant to this Act shall preempt any 
provision of any program for the allocation, emergency delivery, trans-
portation, or purchase of natural gas established by any State or local 
government if such program is in conflict with any such order. 
i ,; > 
Approved February 2, 1977. 
\ ; 
LEGISLATIVE HISTORY: 
. 
., 
HOUSE REPORT No. 95-7 (eomm. of Conference). 
CONGRESSIONAL RECORD, Vol. 123 (1977): 
Jan. 26, 28, 31, considered and passed Senate. 
Feb. 1, considered and passed House, amended. 
Feb. 2, Senate and House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol 13, No. 6: 
Feb. 2, Presidential statement. 
f«j!l,i