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15 U.S. Code § 3371

Authorization of certain sales and transportation

15 U.S. Code § 3371. Authorization of certain sales and transportation

(a) Commission approval of transportation
(1) Interstate pipelines
(A) In general The Commission may, by rule or order, authorize any interstate pipeline to transport natural gas on behalf of—
(i)
any intrastate pipeline; and
(ii)
any local distribution company.
(B) Just and reasonable rates
The rates and charges of any interstate pipeline with respect to any transportation authorized under subparagraph (A) shall be just and reasonable (within the meaning of the Natural Gas Act [15 U.S.C. 717 et seq.]).
(2) Intrastate pipelines
(A) In generalThe Commission may, by rule or order, authorize any intrastate pipeline to transport natural gas on behalf of—
(i)
any interstate pipeline; and
(ii)
any local distribution company served by any interstate pipeline.
(B) Rates and charges
(i) Maximum fair and equitable price
The rates and charges of any intrastate pipeline with respect to any transportation authorized under subparagraph (A), including any amount computed in accordance with the rule prescribed under clause (ii), shall be fair and equitable and may not exceed an amount which is reasonably comparable to the rates and charges which interstate pipelines would be permitted to charge for providing similar transportation service.
(ii) Commission ruleThe Commission shall, by rule, establish the method for calculating an amount necessary to—
(I)
reasonably compensate any intrastate pipeline for expenses incurred by the pipeline and associated with the providing of any gathering, treatment, processing, transportation, delivery, or similar service provided by such pipeline in connection with any transportation of natural gas authorized under subparagraph (A); and
(II)
provide an opportunity for such pipeline to earn a reasonable profit on such services.
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