NATURAL GAS PIPELINE SAFETY ACT OF 1968 AN ACT To authorize the Secretary of Transportation to prescribe safety standards for the transportation of natural and other gas by pipeline, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That this Act may be cited as the "Natural Gas Pipeline Safety Act of 1968". [49 U.S.C. 167 nt.] DEFINITIONS SEC. 2. As used in this Act (1) "Person" means any individual, firm, joint venture, partnership, corporation, association, State, municipality, cooperative association, or joint stock association, and includes any trustee, receiver, assignee, or personal representative thereof; (2) "Gas" means natural gas, flammable gas, or gas which is toxic or corrosive; (3) "Transportation of gas" means the gathering, transmission or distribution of gas by pipeline or its storage in interstate or foreign commerce; except that it shall not include the gathering of gas in those rural locations which lie outside the limits of any incorporated or unincorporated city, town, village, or any other designated residential or commercial area such as a subdivision, a business or shopping center, a community development, or any similar populated area which the Secretary may define as a nonrural area; (4) "Pipeline facilities" includes, without limitation, new and existing pipe rights-of-way and any equipment facility, or building used in the transportation of gas or the treatment of gas during the course of transportation but "rights-of-way" as used in this Act does not authorize the Secretary to prescribe the location or routing of any pipeline facility; (5) "State" includes each of the several States, the District of Columbia, and the Commonwealth of Puerto Rico; (6) "Municipality" mean a city, county, or any other political subdivision of a State; (7) "National organization of State commissions" means the national organization of the State commissions referred to in subchapter III of chapter 103 of title 49, United States Code; (8) "Interstate transmission facilities" means the pipeline facilities used in the transportation of gas which are subject to the jurisdiction of the Federal Energy Regulatory Commission under the Natural Gas Act, except that it shall not include any pipeline facilities within a State which transport gas from an interstate gas pipeline to a direct sales customer within such State purchasing gas for its own consumption; (9) "Intrastate pipeline transportation" means pipeline facilities and transportation of gas within a State which are not subject to the jurisdiction of the Federal Energy Regulatory Commission under the Natural Gas Act, except that it shall include pipeline (2)(A) The rule required under paragraph (1) shall apply to(i) natural gas (I) received by the user pursuant to a contract entered into before September 1, 1977, not including any renewal or extension thereof entered into on or after such date other than any such extension or renewal pursuant to the exercise by such user of an option to extend or renew such contract; (II) other than natural gas the sale for resale or the transportation of which was subject to the jurisdiction of the Federal Power Commission under the Natural Gas Act as of September 1, 1977; (III) which was used as a fuel in any facility in existence on September 1, 1977. (ii) natural gas subject to a prohibition order issued under section 607. (B) The rule required under paragraph (1) shall permit the transfer of contractual interests (i) to any interstate pipeline; (ii) to any local distribution company served by an interstate pipeline; and (iii) to any person served by an interstate pipeline for a high priority use by such person. (3) The rule required under paragraph (1) shall provide that any transfer of contractual interests pursuant to such rule shall be under such terms and conditions as the Commission may prescribe. Such rule shall include a requirement for refund of any consideration, received by the person transferring contractual interests pursuant to such rule, to the extent such consideration exceeds the amount by which the costs actually incurred, during the remainder of the period of the contract with respect to which such contractual interests are transferred, in direct association with the use of heavy petroleum fuel oil as a fuel in the applicable facility exceeds the price under such contract for natural gas, subject to such contract, delivered during such period. (4) In prescribing the rule required under paragraph (1), and in determining whether to approve any transfer of contractual interests, the Commission shall consider whether such transfer of contractual interests is likely to increase demand for imported refined petroleum products. (b) COMMISSION APPROVAL.-(1) No transfer of contractual interests authorized by the rule required under subsection (a)(1) may take effect unless the Commission issues a certificate of public convenience and necessity for such transfer if such natural gas is to be resold by the person to whom such contractual interests are to be transferred. Such certificate shall be issued by the Commission in accordance with the requirements of this subsection and those of section 7 of the Natural Gas Act, and the provisions of such Act applicable to the determination of satisfaction of the public convenience and necessity requirements of such section. (2) The rule required under subsection (a)(1) shall set forth guidelines for the application on a regional or national basis (as the Commission determines appropriate) of the criteria specified in subsection (e) (2) and (3) to determine the maximum consideration permitted as just compensation under this section. |