15 USC 717g

Page 1057

TITLE 15—COMMERCE AND TRADE

(f) Determination of service area; jurisdiction of
transportation to ultimate consumers
(1) The Commission, after a hearing had upon
its own motion or upon application, may determine the service area 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 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) Certificate of public convenience and necessity for service of area already being served
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) Right of eminent domain for construction of
pipelines, etc.
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
necessary 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-ofway, 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.
(June 21, 1938, ch. 556, § 7, 52 Stat. 824; Feb. 7,
1942, ch. 49, 56 Stat. 83; July 25, 1947, ch. 333, 61
Stat. 459; Pub. L. 95–617, title VI, § 608, Nov. 9,
1978, 92 Stat. 3173; Pub. L. 100–474, § 2, Oct. 6, 1988,
102 Stat. 2302.)
AMENDMENTS
1988—Subsec. (f). Pub. L. 100–474 designated existing
provisions as par. (1) and added par. (2).
1978—Subsec. (c). Pub. L. 95–617, § 608(a), (b)(1), designated existing first paragraph as par. (1)(A) and existing second paragraph as par. (1)(B) and added par. (2).
Subsec. (e). Pub. L. 95–617, § 608(b)(2), substituted
‘‘subsection (c)(1)’’ for ‘‘subsection (c)’’.
1947—Subsec. (h). Act July 25, 1947, added subsec. (h).

§ 717g

1942—Subsecs. (c) to (g). Act Feb. 7, 1942, struck out
subsec. (c), and added new subsecs. (c) to (g).
EFFECTIVE DATE OF 1988 AMENDMENT
Pub. L. 100–474, § 3, Oct. 6, 1988, 102 Stat. 2302, provided
that: ‘‘The provisions of this Act [amending this section and enacting provisions set out as a note under
section 717w of this title] shall become effective one
hundred and twenty days after the date of enactment
[Oct. 6, 1988].’’
TRANSFER OF FUNCTIONS
Enforcement functions of Secretary or other official
in Department of Energy and Commission, Commissioners, or other official in Federal Energy Regulatory
Commission related to compliance with certificates of
public convenience and necessity issued under this section with respect to pre-construction, construction,
and initial operation of transportation system for Canadian and Alaskan natural gas transferred to Federal
Inspector, Office of Federal Inspector for Alaska Natural Gas Transportation System, until first anniversary
of date of initial operation of Alaska Natural Gas
Transportation System, see Reorg. Plan No. 1 of 1979,
§§ 102(d), 203(a), 44 F.R. 33663, 33666, 93 Stat. 1373, 1376, effective July 1, 1979, set out under section 719e of this
title. Office of Federal Inspector for the Alaska Natural
Gas Transportation System abolished and functions
and authority vested in Inspector transferred to Secretary of Energy by section 3012(b) of Pub. L. 102–486,
set out as an Abolition of Office of Federal Inspector
note under section 719e of this title. Functions and authority vested in Secretary of Energy subsequently
transferred to Federal Coordinator for Alaska Natural
Gas Transportation Projects by section 720d(f) of this
title.

§ 717g. Accounts; records; memoranda
(a) Rules and regulations for keeping and preserving accounts, records, etc.
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
chapter: Provided, however, That nothing in this
chapter 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) Access to and inspection of accounts and
records
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 natural-gas companies to furnish to the Commission,

§ 717h

TITLE 15—COMMERCE AND TRADE

within such reasonable time as the Commission
may order, any information with respect 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) Books, accounts, etc., of the person controlling gas company subject to examination
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.
(June 21, 1938, ch. 556, § 8, 52 Stat. 825.)
§ 717h. Rates of depreciation
(a) Depreciation and amortization
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 any 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 natural-gas 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 naturalgas 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 or
charges.
(b) Rules
The Commission, before prescribing any rules
or requirements as to accounts, records, or
memoranda, or as to depreciation or amortiza-

Page 1058

tion rates, shall notify each State commission
having jurisdiction with respect to any naturalgas company involved and shall give reasonable
opportunity to each such commission to present
its views and shall receive and consider such
views and recommendations.
(June 21, 1938, ch. 556, § 9, 52 Stat. 826.)
§ 717i. Periodic and special reports
(a) Form and contents of reports
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 chapter. 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) Unlawful conduct
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 chapter or any rule, regulation, or order
thereunder.
(June 21, 1938, ch. 556, § 10, 52 Stat. 826.)
§ 717j. State compacts for conservation, transportation, etc., of natural gas
(a) Assembly of pertinent information; report to
Congress
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) Assembly of information relative to operation
of compact; report to Congress
It shall be the duty of the Commission to assemble and keep current pertinent information