The purpose of this section is to encourage expanded participation by local distribution companies in acquisition of leases and development of natural gas resources on the Outer Continental Shelf by facilitating the transportation in interstate commerce of natural gas, which is produced from a lease located on the Outer Continental Shelf and owned, in whole or in part, by a local distribution company, from such lease to the service area of such local distribution company.
The Federal Energy Regulatory Commission shall, after opportunity for presentation of written and oral views, promulgate and publish in the Federal Register a statement of Commission policy which carries out the purpose of this section and sets forth the standards under which the Commission will consider applications for, and, as appropriate, issue certificates of public convenience and necessity, pursuant to section 717f of title 15, for the transportation in interstate commerce of natural gas, which is produced from a lease located on the Outer Continental Shelf and owned, in whole or in part, by a local distribution company, from such lease to the service area of such local distribution company. Such statement of policy shall specify the criteria, limitations, or requirements the Commission will apply in determing— 1
(1) whether the application of any local distribution company qualifies for consideration under the statement of policy; and
(2) whether the public convenience and necessity will be served by the issuance of the requested certificate of transportation.
Such statement of policy shall also set forth the terms or limitations on which the Commission may condition, pursuant to section 717f of title 15, the issuance of a certificate of transportation under such statement of policy. To the maximum extent practicable, such statement shall be promulgated and published within one year after September 18, 1978.
For purposes of this section, the term—
(1) "local distribution company" means any person—
(A) engaged in the distribution of natural gas at retail, including any subsidiary or affiliate thereof engaged in the exploration and production of natural gas; and
(B) regulated, or operated as a public utility, by a State or local government or agency thereof;
(2) "interstate commerce" shall have the same meaning as such term has under section 717a(7) of title 15; and
(3) "Commission" means the Federal Energy Regulatory Commission.
(Pub. L. 95–372, title VI, §603, Sept. 18, 1978, 92 Stat. 694.)
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Last modified: October 26, 2015