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U.S. Code as of:
01/19/04
Section 3301. Definitions
For purposes of this chapter -
(1) Natural gas
The term "natural gas" means either natural gas unmixed, or any
mixture of natural and artificial gas.
(2) Well
The term "well" means any well for the discovery or production
of natural gas, crude oil, or both.
(3) New well
The term "new well" means any well -
(A) the surface drilling of which began on or after February
19, 1977; or
(B) the depth of which was increased, by means of drilling on
or after February 19, 1977, to a completion location which is
located at least 1,000 feet below the depth of the deepest
completion location of such well attained before February 19,
1977.
(4) Old well
The term "old well" means any well other than a new well.
(5) Marker well
(A) General rule
The term "marker well" means any well from which natural gas
was produced in commercial quantities at any time after January
1, 1970, and before April 20, 1977.
(B) New wells
The term "marker well" does not include any new well under
paragraph (3)(A) but includes any new well under paragraph
(3)(B) if such well qualifies as a marker well under
subparagraph (A) of this paragraph.
(6) Reservoir
The term "reservoir" means any producible natural accumulation
of natural gas, crude oil, or both, confined -
(A) by impermeable rock or water barriers and characterized
by a single natural pressure system; or
(B) by lithologic or structural barriers which prevent
pressure communication.
(7) Completion location
(A) General rule
The term "completion location" means any subsurface location
from which natural gas is being or has been produced in
commercial quantities.
(B) Marker well
The term "completion location", when used with reference to
any marker well, means any subsurface location from which
natural gas was produced from such well in commercial
quantities after January 1, 1970, and before April 20, 1977.
(8) Proration unit
The term "proration unit" means -
(A) any portion of a reservoir, as designated by the State or
Federal agency having regulatory jurisdiction with respect to
production from such reservoir, which will be effectively and
efficiently drained by a single well;
(B) any drilling unit, production unit, or comparable
arrangement, designated or recognized by the State or Federal
agency having jurisdiction with respect to production from the
reservoir, to describe that portion of such reservoir which
will be effectively and efficiently drained by a single well;
or
(C) if such portion of a reservoir, unit, or comparable
arrangement is not specifically provided for by State law or by
any action of any State or Federal agency having regulatory
jurisdiction with respect to production from such reservoir,
any voluntary unit agreement or other comparable arrangement
applied, under local custom or practice within the locale in
which such reservoir is situated, for the purpose of describing
the portion of a reservoir which may be effectively and
efficiently drained by a single well.
(9) New lease
The term "new lease", when used with respect to the Outer
Continental Shelf, means a lease, entered into on or after April
20, 1977, of submerged acreage.
(10) Old lease
The term "old lease", when used with respect to the Outer
Continental Shelf, means any lease other than a new lease.
(11) New contract
The term "new contract" means any contract, entered into on or
after November 9, 1978, for the first sale of natural gas which
was not previously subject to an existing contract.
(12) Rollover contract
The term "rollover contract" means any contract, entered into
on or after November 9, 1978, for the first sale of natural gas
that was previously subject to an existing contract which expired
at the end of a fixed term (not including any extension thereof
taking effect on or after November 9, 1978) specified by the
provisions of such existing contract, as such contract was in
effect on November 9, 1978, whether or not there is an identity
of parties or terms with those of such existing contract.
(13) Existing contract
The term "existing contract" means any contract for the first
sale of natural gas in effect on November 8, 1978.
(14) Successor to an existing contract
The term "successor to an existing contract" means any
contract, other than a rollover contract, entered into on or
after November 9, 1978, for the first sale of natural gas which
was previously subject to an existing contract, whether or not
there is an identity of parties or terms with those of such
existing contract.
(15) Interstate pipeline
The term "interstate pipeline" means any person engaged in
natural gas transportation subject to the jurisdiction of the
Commission under the Natural Gas Act [15 U.S.C. 717 et seq.].
(16) Intrastate pipeline
The term "intrastate pipeline" means any person engaged in
natural gas transportation (not including gathering) which is not
subject to the jurisdiction of the Commission under the Natural
Gas Act [15 U.S.C. 717 et seq.] (other than any such pipeline
which is not subject to the jurisdiction of the Commission solely
by reason of section 1(c) of the Natural Gas Act [15 U.S.C.
717(c)]).
(17) Local distribution company
The term "local distribution company" means any person, other
than any interstate pipeline or any intrastate pipeline, engaged
in the transportation, or local distribution, of natural gas and
the sale of natural gas for ultimate consumption.
(18) Committed or dedicated to interstate commerce
(A) General rule
The term "committed or dedicated to interstate commerce",
when used with respect to natural gas, means -
(i) natural gas which is from the Outer Continental Shelf;
and
(ii) natural gas which, if sold, would be required to be
sold in interstate commerce (within the meaning of the
Natural Gas Act [15 U.S.C. 717 et seq.]) under the terms of
any contract, any certificate under the Natural Gas Act, or
any provision of such Act.
(B) Exclusion
Such term does not apply with respect to -
(i) natural gas sold in interstate commerce (within the
meaning of the Natural Gas Act [15 U.S.C. 717 et seq.]) -
(I) under section 6 of the Emergency Natural Gas Act of
1977;
(II) under any limited term certificate, granted pursuant
to section 7 of the Natural Gas Act [15 U.S.C. 717f], which
contains a pregrant of abandonment of service for such
natural gas;
(III) under any emergency regulation under the second
proviso of section 7(c) of the Natural Gas Act [15 U.S.C.
717f(c)]; or
(IV) to the user by the producer and transported under
any certificate, granted pursuant to section 7(c) of the
Natural Gas Act [15 U.S.C. 717f(c)], if such certificate
was specifically granted for the transportation of that
natural gas for such user;
(ii) natural gas for which abandonment of service was
granted before November 9, 1978, under section 7 of the
Natural Gas Act [15 U.S.C. 717f]; and
(iii) natural gas which, but for this clause, would be
committed or dedicated to interstate commerce under
subparagraph (A)(ii) by reason of the action of any person
(including any successor in interest thereof, other than by
means of any reversion of a leasehold interest), if on May
31, 1978 -
(I) neither that person, nor any affiliate thereof, had
any right to explore for, develop, produce, or sell such
natural gas; and
(II) such natural gas was not being sold in interstate
commerce (within the meaning of the Natural Gas Act [15
U.S.C. 717 et seq.]) for resale (other than any sale
described in clause (i)(I), (II), or (III)).
(19) Certificated natural gas
The term "certificated natural gas" means natural gas
transported by any interstate pipeline in a facility for which
there is in effect a certificate issued under section 7(c) of the
Natural Gas Act [15 U.S.C. 717f(c)]. Such term does not include
natural gas sold to the user by the producer and transported
pursuant to a certificate which is specifically issued under
section 7(c) of the Natural Gas Act for the transportation of
that natural gas, for such user unless such natural gas is used
for the generation of electricity.
(20) Sale
The term "sale" means any sale, exchange, or other transfer for
value.
(21) First sale
(A) General rule
The term "first sale" means any sale of any volume of natural
gas -
(i) to any interstate pipeline or intrastate pipeline;
(ii) to any local distribution company;
(iii) to any person for use by such person;
(iv) which precedes any sale described in clauses (i),
(ii), or (iii); and
(v) which precedes or follows any sale described in clauses
(i), (ii), (iii), or (iv) and is defined by the Commission as
a first sale in order to prevent circumvention of any maximum
lawful price established under this chapter.
(B) Certain sales not included
Clauses (i), (ii), (iii), or (iv) of subparagraph (A) shall
not include the sale of any volume of natural gas by any
interstate pipeline, intrastate pipeline, or local distribution
company, or any affiliate thereof, unless such sale is
attributable to volumes of natural gas produced by such
interstate pipeline, intrastate pipeline, or local distribution
company, or any affiliate thereof.
(22) Deliver
The term "deliver", when used with respect to any first sale of
natural gas, means the physical delivery from the seller; except
that in the case of the sale of proven reserves in place to any
interstate pipeline, any intrastate pipeline, any local
distribution company, or any user of such natural gas, such term
means the transfer of title to such reserves.
(23) Certificate
The term "certificate", when used with respect to the Natural
Gas Act [15 U.S.C. 717 et seq.], means a certificate of public
convenience and necessity issued under such Act.
(24) Commission
The term "Commission" means the Federal Energy Regulatory
Commission.
(25) Federal agency
The term "Federal agency" has the same meaning as given such
term in section 105 of title 5.
(26) Person
The term "person" includes the United States, any State, and
any political subdivision, agency, or instrumentality of the
foregoing.
(27) Affiliate
The term "affiliate", when used in relation to any person,
means another person which controls, is controlled by, or is
under common control with, such person.
(28) Electric utility
The term "electric utility" means any person to the extent such
person is engaged in the business of the generation of
electricity and sale, directly or indirectly, of electricity to
the public.
(29) Mcf
The term "Mcf", when used with respect to natural gas, means
1,000 cubic feet of natural gas measured at a pressure of 14.73
pounds per square inch (absolute) and a temperature of 60 degrees
Fahrenheit.
(30) Btu
The term "Btu" means British thermal unit.
(31) Month
The term "month" means a calendar month.
(32) Mile
The term "mile" means a statute mile of 5,280 feet.
(33) United States
The term "United States" means the several States and includes
the Outer Continental Shelf.
(34) State
The term "State" means each of the several States and the
District of Columbia.
(35) Outer Continental Shelf
The term "Outer Continental Shelf" has the same meaning as such
term has under section 1331(a) of title 43.
(36) Prudhoe Bay Unit of Alaska
The term "Prudhoe Bay Unit of Alaska" means the geographic area
subject to the voluntary unit agreement approved by the
Commissioner of the Department of Natural Resources of the State
of Alaska on June 2, 1977, and referred to as the "affected area"
in Conservation Order No. 145 of the Alaska Oil and Gas
Conservation Committee, Division of Oil and Gas Conservation,
Department of Natural Resources of the State of Alaska, as such
order was in effect on June 1, 1977, and determined without
regard to any adjustments in the description of the affected area
permitted to be made under such order.
(37) Antitrust laws
The term "Federal antitrust laws" means the Sherman Act (15
U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 12, 13, 14-19, 20,
21, 22-27), the Federal Trade Commission Act (15 U.S.C. 41 et
seq.), sections 73 and 74 of the Wilson Tariff Act (15 U.S.C.
8-9), and the Act of June 19, 1936, chapter 592 (15 U.S.C. 13,
13a, 13b, and 21a).
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