Pdf natural gas pipeline regulation in the united states. Reform of the natural gas policy act of 1978 published by tu law digital commons, 1981. Delegation of functions delegation of presidents authority to secretary of the interior, see note set out under section 715j of this title. The natural gas industry has undergone tremendous change since 1938, and pipeline companies no longer function as resellers of gas to local distribution companies ldcs, the ideas behind the. Emergency natural gas act of 1977 except the authority to declare and terminate a natural gas emergency, was revoked by ex. It was first introduced into the united states house of representatives during the 1th united states congress, and passed the house. The natural gas policy act ngpa took so long and required so much effort because it was the first building block in the carter administrations plan to increase supply while reducing domestic consumption of energy.
On october 20, 2005, following enactment of epact 2005, the commission issued. Congress in 1938 in order to control the interstate transmission of natural gas. To amend the natural gas policy act of 1978 to eliminate wellhead price controls on the first sale of natural gas, and to make technical and conforming amendments to such act. An act to provide for the appointment and functions of a director general of gas supply and the establishment and functions of a gas consumers council. The legislative history at the back of the act provides detail about the past and. Chapter 10 condemnation in the natural gas industry. Millions of years ago, these organisms died and were buried along with. Gas system for the purposes of this act, the gas system is a technical system which comprises the gas transmission network located in the estonian territory and the appropriate control, protection, communication and metering systems. Under section 7c of the natural gas act of 1938, the federal. Natural gas act changes in rates under section 4d philip e.
Natural gas is composed mostly of methane, but it also contains small amounts of ethane, propane, butane, and pentane. These statutes regulated interstate activities of the electric and natural gas industries, respectively. A bill for the relief of joe cortina of tampa, florida. But the act also involved a prolonged and costly process because of the. Get an answer for what is the natural gas act of 1938, and why is it important. Section 311 and 312 of the natural gas policy act of 1978. It was again introduced during the 114th united states. Within the department of energy doe, the office of regulation, analysis, and. The natural gas pipeline permitting reform act is a bill that would place a 12month deadline on the federal energy regulatory commission to approve or reject any proposal for a natural gas pipeline. The act applies to transmission, distribution, supply and storage of natural gas, including liquefied natural gas lng. An act entitled oil and gas act 1998, being an act to enact comprehensive legislation governing the exploration for and production of petroleum including oil and gas in papua new guinea, including the offshore area, and the grant to traditional landowners and. Standards for business practices of interstate natural gas pipelines.
The natural gas policy act of 1978 ngpa authorized the federal energy regulatory commission ferc to regulate both intrastate and interstate natural gas production and transmission. The companies to whom this docume nt is addressed the licence holders are the holders of a gas transporter licence the licence granted or treated as. Delegation of presidents authority to secretary of the interior, see note set out under section 715j of this title. In the 1900s, state regulatory commissions controlled the shipments of. In addition, the act set price ceilings for wellhead first sales of gas, though these were later repealed. Scope of application of this act 1 this act governs activities related to the import, transmission, distribution and sale of natural gas hereinafter, gas by way of gas networks hereinafter, networks, and connection to networks. Emergency conversion of utilities and other facilities. What is the natural gas act of 1938, and why is it.
The nga gave the fpc jurisdiction over all naturalgas companies. Our experience under the natural gas policy act of 1978. Macavoy the enactment of natural gas legislation in 1978 was a massive undertaking, requiring thousands of hours of effort by energy subcommittees of the house and senate, by a special conference coin mittee, and by. Together with the federal power act of 1935, the natural gas act of 1938 nga p. Liquefied natural gas, or l ng, is natural gas that has been cooled to minus 160 c minus 260 f at atmospheric pressure and reduced to a liquid state that is 1600th its original volume. The acts are similarly structured and constitute the. On october 20, 2005, following enactment of epact 2005, the commission issued its first policy statement on enforcement. In 1938, the federal government became involved directly in the regulation of interstate natural gas with the passage of the natural gas act nga. An act to regulate the transportation and sale of natural gas in. Section 5 permits the federal energy regulatory commission the ferc, on its own. The natural gas act of 1938, as amended, requires any person who wishes to engage in the import andor export natural gas, including liquefied natural gas, compressed natural gas, compressed gas liquids, etc. It also applies to biogas, gas from biomass and other types of gas on land, territorial sea, in the exclusive economic zone and on the danish continental shelf area. To meet the growing demand for natural gas, ferc must continue to respond quickly when.
Natural gas pipeline permitting reform act wikipedia. In passing the natural gas act of 1938, congress acknowledged that interstate natural gas pipelines and other natural gas transmission. Our experience under the natural gas policy act of 1978, and. The office of oil and gas global security and supply, office of natural gas regulatory activities regulates natural gas imports and exports under section 3 of the natural gas act of 1938. What is the natural gas act of 1938, and what did it. Voluntary conversion of natural gas users to heavy fuel oil 717z. The natural gas act of 1938 had an enormous impact on the future of not only the interstate natural gas market, but the u. It was first introduced into the united states house of representatives during the 1th united states congress h. Natural gas gas remains an essential component of the energy supply of the. The minister for climate, energy and building shall determine that transmission companies whose facilities do. A brief history of natural gas although naturally occurring gas has been known since ancient times, its commercial use is relatively recent. Condemnation in the natural gas industry 365 of compressor stations, pressure apparatus, or other stations or equipment necessary to the proper operation of such pipe line or pipe lines. In 1938, however, with the growing importance of natural gas, concern over the heavy concentration of the natural gas industry, and the monopolistic tendencies of interstate pipelines to charge higher than competitive prices due to their market power, the u. Oil and gas law is unique given the very nature of oil and gas, and the terms and phrases about this area of law are equally unique.
This act defined a naturalgas company as a person engaged in the transportation of natural gas in interstate com. Gas act 1986 1986 chapter 44 an act to provide for the appointment and functions of a director general of gas supply and the establishment and functions of a gas consumers council. Jurisdiction of the federal power commission under the natural gas act commingled gas david s. The natural gas act of 1938 was the first occurrence of the united states federal government regulating the natural gas industry. Modification of the special conditions of the gas transporter licence held by the licence holders listed above 1. An act to regulate the transportation and sale of natural gas in interstate commerce, and for other purposes. Division of natural gas regulation department of energy. Methane, a combination of hydrogen and carbon, is formed when plants and animals organic matter are trapped beneath the sedimentary layers of the earth. Natural gas act the act of june 21, 1938, chapter 556 as. Oil and gas law is also different from the law that ap. One federal statute is especially relevant to gas storage operations, regardless of whether a taking is involved.