Gaselectricity nexus international institute for energy systems. Together with the federal power act of 1935, the natural gas act of 1938 nga p. The natural gas act, state environmental policy, and the. 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. Concern about the exercise of market power by interstate pipeline companies prompted the nga, which gave the federal power commission fpc subsequently the federal energy regulatory commission ferc. Channing jones third year law student and hamilton fellow at columbia law school 1. Be it enacted by the senate and house of representatives of the united states of america in congress assembled. Natural gas rates congress enacted the natural gas act nga in 1938 to regulate the sale and transportation of natural gas in interstate commerce. The kenai facility in nikiski has been exporting lng since 1969. Amendment of regulations and approved forms under the natural gas act, to prescribe revised rules governing the form, composition, filing, and posting of rate schedules and tariffs for the transportation or sale of natural gas subject to the jurisdiction of the commission, order no.
Interagency agreement on early coordination of required. Interstate natural gas pipeline siting every crs report. Natural gas act the act of june 21, 1938, chapter 556 as amended through p. Appendix b data sources energy information administration. Get an answer for what is the natural gas act of 1938, and why is it important. 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. Under current law, the federal energy regulatory commissions ferc ability to protect natural gas customers against unjust and. We would like to show you a description here but the site wont allow us. The ferc is responsible for authorizing the siting, construction, and operation of interstate natural gas pipelines, natural gas storage fields, and the liquified natural gas lng facilities pursuant to sections 3 and 7 of.
In addition, the act set price ceilings for wellhead first sales of gas, though these were later repealed. The natural gas act of 1938 was the first occurrence of the united states federal government regulating the natural gas industry. These statutes regulated interstate activities of the electric and natural gas industries, respectively. In the energy policy act of 2005, congress revisited the issue of lng imports and exports and. Voluntary conversion of natural gas users to heavy fuel oil 717z. Pdf natural gas pipeline regulation in the united states. In 1938, congress passed the natural gas act, which established a rebuttable presumption that all natural gas exports, including lng, are in the public interest and shall be permitted.
Under section 3 of the natural gas act of 1938, the department of energy has approval authority over the import and export of natural gas, including liquefied natural gas lng. Pdf this monograph provides a detailed overview of federallevel regulation. The latest general information on the coronavirus covid19 is available on coronavirus. Sabine pass liquefaction, llc spl hereby requests that doe, office of fossil energy fe grant longterm authorization for spl to engage in exports. Wellhead natural gas deregulation under the natural gas policy act of 1978.
The purpose of oil and natural gas regulations is to establish the framework within which regulatory programs insure that protection of the environment, especially water, is given the highest consideration with respect to the development of oil and gas resources. Conditions and considerations leading to the development of the policy statement. In the matter of sabine pass liquefaction llc, fe docket. In general, pipelines are allowed to charge their customers a rate which enables them to recover direct expendituressuch as the natural gas they buy from producersand to earn afair. Under section 7 of the natural gas act of 1938, ferc also issues certificates of public convenience and necessity for lng facilities engaged in interstate natural gas transportation by pipeline. The acts are similarly structured and constitute the. The natural gas act of 1938 was the first occurrence of the united states federal government. One of the benefits of the natural gas act was that it gave. Iii a requirement to file with the commission sched.
A brief history of natural gas although naturally occurring gas has been known since ancient times, its commercial use is relatively recent. What is the natural gas act of 1938, and why is it. The ferc is responsible for authorizing the siting, construction, and operation of interstate natural gas pipelines, natural gas storage fields, and the liquified natural gas lng facilities pursuant to sections 3 and 7 of the natural gas act of 1938 nga, as amended. Testimony of david bookbinder chief counsel niskanen. Pipeline transportation of natural gas and crude oil. Congress enacted the natural gas act nga in 1938, in order to. Emergency natural gas act of 1977 except the authority to declare and terminate a natural gas emergency, was revoked by ex. What links here related changes upload file special pages permanent. Emergency conversion of utilities and other facilities. Within the department of energy doe, the office of regulation, analysis, and. The natural gas act of 1938 had an enormous impact on the future of not only the interstate natural gas market, but the u. An act to regulate the transportation and sale of natural gas in.
An exchange which maintains a futures market for crude oil and natural gas. On june 16, 2011, the commission issued an order denying a request by turtle bayou gas storage company, llc turtle bayou for authorization under section 7 of the natural gas act nga to construct and operate a proposed natural. In 1954, however, this all changed with the supreme courts decision in phillips petroleum co. Increased pipeline imports from canada gave the false impression that, once again, there was cheap and abundant natural gas for decades to come. Division of natural gas regulation department of energy. If a pipeline customer or ferc itself seeks to decrease the pipeline rate, it files an action under section 5 of the natural gas act. Proceedings leading to the policy statement, purpose of the policy statement, and the issues it sought to address. Under section 7c of the natural gas act of 1938, the federal energy regulatory commission ferc is authorized to issue certificates of public convenience and necessity for the.
Phmsa lng frequently asked questions faq archive records. Mineral leasing act of 1938 imla, the indian mineral development act of 1982 imda, and the act of march 3, 1909. Department of the interior 431084 bureau of land management. 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. In the 1900s, state regulatory commissions controlled the shipments of natural gas, but when pipelines crossed state lines, the u. Natural gas act of 1938 nga a federal statute enacted in 1938 to provide regulatory control over the interstate sale and transportation of natural gas. Oil and gas the hinshaw bill amendment to the natural. The natural gas act, state environmental policy, and the jurisdiction of the federal circuit courts this is an abridged version of a student note originally appearing in 42 colum.
Amendments to the clean air act in 1990 caused many power plants to switch to natural gas to replace coal. A pipeline developer formally files an application with ferc for a certificate of public. Before sharing sensitive information, make sure youre on a federal government site. For more than four decades alaska has been exporting lng overseas. Regulation of natural gas companies a necessity of regulation in public interest. An act to regulate the transportation and sale of natural gas in interstate commerce. A key aspect is the setting of tariffs, or rates, that may be charged. Under section 7c of the natural gas act of 1938 nga, ferc is authorized to issue. In this case, atlantic showed that under the 23 formula, the lessee of a 0.
In the 1900s, state regulatory commissions controlled the shipments of. Sabine pass liquefaction, llc spl hereby requests that doe, office of fossil energy fe grant longterm authorization for. Federal register certification of new interstate natural. Hearing on modernizing the natural gas act to ensure it works for everyone on wednesday, february 5, 2020, at 10 a. Natural gas act the act of june 21, 1938, chapter 556 as. All lng plants were closed and some were used for gas storage. Changed circumstances since issuance of the policy statement. Congress in 1938 in order to control the interstate transmission of natural gas. In this decision, the supreme court ruled that natural gas producers that sold natural gas into interstate pipelines fell under the classification of natural gas companies in the nga, and were subject to regulatory oversight by the fpc. Data are collected from annual, quarterly, and monthly surveys. Under section 7c of the natural gas act of 1938, the federal energy. Under the nga, the federal power commission was given two major powers.
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. It issues certificates of public convenience and necessity for such pipelines under section 7 of the natural gas act of 1938, as amended the nga, and authorizes the construction and siting of facilities for the import or export of natural gas under section 3 of the nga. Percentage of gross value for indian and federal oil and gas 17. It was focused on regulating the rates charged by interstate natural gas transmission companies. In the years prior to the passage of the act, concern arose about the monopolistic tendencies of the transmission companies and the fact that they were charging higher. Pursuant to section 3 of the natural gas act nga 1. What is the natural gas act of 1938, and what did it. Regulation of natural gas companies text contains those laws in effect on march 5, 2018 from title 15commerce and trade chapter 15bnatural gas 717. Before its recent amendment, the natural gas act i gave the federal power commission jurisdiction over the rates and service of natural gas companies, defined in the act as persons engaged in the transporta. Section 4 of the bill amends the energy policy act of 2005 and adds a new provision section 319 to. Atmos energys vision is to be the safest provider of natural gas services. The natural gas policy act took the first steps towards deregulating the natural gas market, by instituting a scheme for the gradual removal of price ceilings at the wellhead.
The nga declares that the business of transporting and selling natural gas for ultimate distribution to the public is affected with a public interest, and that federal regulation in matters relating to the transportation of natural gas and the sale thereof in. Processes for the environmental and historic preservation. Union law, in particular directive 200972ec of the european. Under the natural gas act, if a pipeline seeks a rate increase, it files a case under section 4, and ferc sets an effective date, generally five months in the future, as of which the new rate if any will take effect. Description the natural gas act nga of 1938 was the first instance of direct federal regulation of the natural gas industry. However, there still existed significant regulations regarding the sale of gas from an interstate pipeline to local utilities and local distribution companies ldcs. T ogether with the federal power act of 1935, the natural gas act of 1938 nga p.
1595 692 1678 1672 811 1368 859 1254 53 399 1316 803 801 1642 298 1022 244 326 263 934 208 5 247 792 651 221 1098 1238 548 490 1215 923 337 452 310 190