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U.S. Code as of:
01/19/04
Section 717f. Construction, extension, or abandonment of facilities
(a) Extension or improvement of facilities on order of court;
notice and hearing
Whenever the Commission, after notice and opportunity for
hearing, finds such action necessary or desirable in the public
interest, it may by order direct a natural-gas company to extend or
improve its transportation facilities, to establish physical
connection of its transportation facilities with the facilities of,
and sell natural gas to, any person or municipality engaged or
legally authorized to engage in the local distribution of natural
or artificial gas to the public, and for such purpose to extend its
transportation facilities to communities immediately adjacent to
such facilities or to territory served by such natural-gas company,
if the Commission finds that no undue burden will be placed upon
such natural-gas company thereby: Provided, That the Commission
shall have no authority to compel the enlargement of transportation
facilities for such purposes, or to compel such natural-gas company
to establish physical connection or sell natural gas when to do so
would impair its ability to render adequate service to its
customers.
(b) Abandonment of facilities or services; approval of Commission
No natural-gas company shall abandon all or any portion of its
facilities subject to the jurisdiction of the Commission, or any
service rendered by means of such facilities, without the
permission and approval of the Commission first had and obtained,
after due hearing, and a finding by the Commission that the
available supply of natural gas is depleted to the extent that the
continuance of service is unwarranted, or that the present or
future public convenience or necessity permit such abandonment.
(c) Certificate of public convenience and necessity
(1)(A) No natural-gas company or person which will be a
natural-gas company upon completion of any proposed construction or
extension shall engage in the transportation or sale of natural
gas, subject to the jurisdiction of the Commission, or undertake
the construction or extension of any facilities therefor, or
acquire or operate any such facilities or extensions thereof,
unless there is in force with respect to such natural-gas company a
certificate of public convenience and necessity issued by the
Commission authorizing such acts or operations: Provided, however,
That if any such natural-gas company or predecessor in interest was
bona fide engaged in transportation or sale of natural gas, subject
to the jurisdiction of the Commission, on February 7, 1942, over
the route or routes or within the area for which application is
made and has so operated since that time, the Commission shall
issue such certificate without requiring further proof that public
convenience and necessity will be served by such operation, and
without further proceedings, if application for such certificate is
made to the Commission within ninety days after February 7, 1942.
Pending the determination of any such application, the continuance
of such operation shall be lawful.
(B) In all other cases the Commission shall set the matter for
hearing and shall give such reasonable notice of the hearing
thereon to all interested persons as in its judgment may be
necessary under rules and regulations to be prescribed by the
Commission; and the application shall be decided in accordance with
the procedure provided in subsection (e) of this section and such
certificate shall be issued or denied accordingly: Provided,
however, That the Commission may issue a temporary certificate in
cases of emergency, to assure maintenance of adequate service or to
serve particular customers, without notice or hearing, pending the
determination of an application for a certificate, and may by
regulation exempt from the requirements of this section temporary
acts or operations for which the issuance of a certificate will not
be required in the public interest.
(2) The Commission may issue a certificate of public convenience
and necessity to a natural-gas company for the transportation in
interstate commerce of natural gas used by any person for one or
more high-priority uses, as defined, by rule, by the Commission, in
the case of -
(A) natural gas sold by the producer to such person; and
(B) natural gas produced by such person.
(d) Application for certificate of public convenience and necessity
Application for certificates shall be made in writing to the
Commission, be verified under oath, and shall be in such form,
contain such information, and notice thereof shall be served upon
such interested parties and in such manner as the Commission shall,
by regulation, require.
(e) Granting of certificate of public convenience and necessity
Except in the cases governed by the provisos contained in
subsection (c)(1) of this section, a certificate shall be issued to
any qualified applicant therefor, authorizing the whole or any part
of the operation, sale, service, construction, extension, or
acquisition covered by the application, if it is found that the
applicant is able and willing properly to do the acts and to
perform the service proposed and to conform to the provisions of
this chapter and the requirements, rules, and regulations of the
Commission thereunder, and that the proposed service, sale,
operation, construction, extension, or acquisition, to the extent
authorized by the certificate, is or will be required by the
present or future public convenience and necessity; otherwise such
application shall be denied. The Commission shall have the power to
attach to the issuance of the certificate and to the exercise of
the rights granted thereunder such reasonable terms and conditions
as the public convenience and necessity may require.
(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-of-way, 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.
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