spondence, 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. (d) 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 Commission, as hereinbefore provided. Such testimony shall be reduced to writing by the person taking deposition, or under his direction, and shall, after it has been reduced to writing, be subscribed by the deponent.

(e) 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.

(f) 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.

(g) No person shall be excused from attending and testifying or from producing books, papers, correspondence, memoranda, contracts, agreements, or other records and documents before the Commission, or in obedience to the subpena of the Commission or any member thereof or any officer designated by it, or in any cause or proceeding instituted by the Commission, on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture; but no individual shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled to testify or produce evidence, documentary or otherwise, after having claimed his privilege against self-incrimination, except that such individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.

HEARINGS; RULES OF PROCEDURE

SEC. 15. (a) 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.

(b) 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.

ADMINISTRATIVE 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.

APPOINTMENT OF OFFICERS AND EMPLOYEES

SEC. 17. 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 States; and the Commission may, subject to civilservice laws, appoint such other officers and employees as are necessary for carrying out such functions and fix their salaries in accordance with the Classification Act of 1923, as amended.

REHEARINGS; COURT REVIEW OF ORDERS

SEC. 18. (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.

(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 served upon any member of the Commission and thereupon the Commission shall certify and file with the court a transcript of the record upon which the order complained of was entered. Upon the filing of such transcript such court shall have exclusive jurisdiction 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 so to do. 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 seem proper. The Commission may modify its findings as to the facts by reason of the additional evidence so 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 sections 239 and 240 of the Judicial Code, as amended (U. S. C., title 28, secs. 346 and 347).

(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.

ENFORCEMENT OF ACT; REGULATIONS AND ORDERS

SEC. 19. (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 Supreme Court of 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 to the Attorney General, who, in his discretion, may institute the necessary criminal proceedings under this Act.

(b) Upon application of the Commission the district courts of the United Statesc, the Supreme Court of 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.

GENERAL PENALTIES

SEC. 20. (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 declared 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 $5,000 or by imprisonment for not more than two 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 $500 for each and every day during which such offense occurs.

JURISDICTION OF OFFENSES; ENFORCEMENT OF LIABILITIES AND DUTIES

SEC. 21. The District Courts of the United States, the Supreme Court of 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, 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 de

fendant may be found. Judgments and decrees so rendered shall be subject to review as provided in 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.

SEPARABILITY OF PROVISIONS

SEC. 22. 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.

SEC. 23. This Act may be cited as the Natural Gas Act.

[H. R. 5711, 75th Cong., 1st sess.]

A BILL To aid the several States in the proper conservation, orderly production, and procurement of natural gas for interstate commerce, and to regulate its transportation, sale, and exchange in interstate commerce in order to insure its fair and equitable distribution and marketing, 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 of 1937".

DECLARATION OF POLICY AND PURPOSE

SEC. 2. (a) It is hereby declared to be the policy of the Congress, in the public interest and the promotion of the general welfare, to conserve those natural resources of the United States which are in general demand for use, by providing against their waste and for their orderly and economical availability for the longest practicable period.

(b) Natural gas is a national resource of a wasting and fugitive character. It is in general demand as a prime source of power and heat and constitutes bout 75 per centum of all fuel gas consumed throughout the United States. Its wide general distribution throughout the several States is deemed a public necessity, and its proper conservation, orderly production, sale, exchange, transportation, and distribution are hereby recognized and declared to be in the promotion of the general welfare and affected with a high public interest. Most natural gas is produced at long distances from the consuming markets where it is distributed by public utilities in response to a general demand. It is necessary in order to reach such markets that the natural gas be moved in interstate commerce through pipe lines.

Already about 70 per centum of such pipe-line mileage is dominated by four groups of interests.

The production and use, transportation, sale or exchange, and distribution of natural gas have been, and are being, conducted wastefully, uneconomically, and inequitably by reason of the fact that the separate States alone have been unable effectively to prevent depletion at an excessive rate and to terminate such wasteful, uneconomical, and inequitable practices, all of which are highly detrimental to the public interests.

(c) The exercise of Federal jurisdiction is declared necessary in the public interest to regulate that part of said natural gas and natural-gas pipe-line industry which is not subject to regulation by the several States, and to aid the States in the proper conservation and orderly production of this valuable natural resource.

(d) It is also declared to be an integral part of this policy to prevent monopolization in every branch of the natural-gas industry, except to the extent that a publicly regulated monopoly becomes a necessity in order adequately and efficiently to serve the general public, in which event it is declared to be the policy so to regulate as to avoid the evils and abuses of monopoly. Therefore, it is the purpose of Congress by this Act to effectuate such declared policy throughout the United States as to natural gas.

DEFINITIONS

SEC. 3. When used in this Act, unless the context otherwise requires―

(1) "Person" includes an individual, partnership, corporation, or joint-stock company.

(2) "Corporation" includes any corporation, joint-stock company, partnership, association, business trust, recognized 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 town, city, county, or other political subdivision 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 natural gas as it issues from wells or is segregated or recovered in stripping, or by any other method, and shall include such natural gas though mixed with, or modified by, other gas or substance.

(6) "Natural-gas pipe-line company” means a person or corporation engaged in the transmission of natural gas through pipe lines in interstate commerce. (7) "Natural-gas pipe line" means a main, including its branches, by means of which natural gas is transmitted in whole or in part in interstate commerce, destined in whole or in part for ultimate distribution to industries, the general public, or other consumers, whether or not such line or lines, or portions thereof, are owned or controlled by a single or by several interests.

(8) Natural gas shall be held to be transmitted or transported in interstate commerce if transmitted from a State to any point outside thereof, or between points within the same State but through any point outside thereof, or from or to any place in the United States to or from a foreign country, but only insofar as such transmission takes place within the United States. Every person who so transmits or transports natural gas engages in interstate commerce in natural gas.

(9) "Field gathering line" means a pipe line through which natural gas is transmitted from the well head to the main natural-gas pipe line.

(10) "Low-pressure-distribution lines" or "service lines" mean pipe lines through which natural gas is distributed from the natural-gas pipe line to

consumers.

(11) "Commission" means the Federal Power Commission.

(12) "State commission" means the regulatory body of a State or a municipality which has jurisdiction to regulate rates and charges for the sale of natural gas to consumers within such State or municipality, respectively, or which has jurisdiction to regulate the production and sale of natural gas by the producers or gas-land owners.

(13) "Public utility" means any person who engages in the business of producing, transmitting, selling and exchanging, and distributing natural gas for public use.

(14) The verb "control" means to manage or direct in fact, or substantially and purposely to influence the acts or policy, and the noun has a corresponding meaning.

(15) "Depreciation" also includes depletion.

STANDARDS OF APPLICATION AND JURISDICTION

SEC. 4. (1) The standard to be applied in the administration of the provi sions of this Act, except in any case where a different standard is expressly provided for, shall be the public interest, convenience, and necessity.

(2) The provisions of this Act shall apply to the procurement of natural gas for the purpose of its transmission through pipe lines and its sale, exchange, transmission, or distribution in interstate commerce; also to all instrumentalities, including contracts and agreements which substantially affect such interstate transportation and sale or exchange of natural gas. This Act shall not apply to the procurement for, or the sale of, natural gas exclusively in intrastate commerce, nor to the procurement, transportation, and distribution of natural gas solely for the use and consumption of the procurer or transmitter of the natural gas, or for use and consumption of his tenant on property owned or controlled by him, and not for resale.

(3) The Commission shall have jurisdiction over all facilities for the procurement of natural gas for its transmission through pipe lines and its sale, or for exchange, or distribution in interstate commerce, and over the transmission of natural gas in pipe lines in interstate commerce and over the sale, or exchange, of natural gas in interstate commerce, and over all facilities connected therewith as parts of a system of natural-gas transmission operated in more than one State.