(b) Allocation of certain boiler fuel gas
(1) Required findingThe President shall not allocate supplies of natural gas under this subsection unless he finds that—
(C)
the exercise of authority under this subsection is reasonably necessary to assist in meeting
natural gas requirements for such
high-priority uses; and
(c) Allocation of general pipeline supply
(1) Required findingsThe President shall not allocate supplies of natural gas under this subsection unless he finds that—
(C)
the exercise of authority under this subsection is reasonably necessary to assist in meeting
natural gas requirements for such
high-priority uses;
(F)
such allocation will not result in a disproportionate share of deliveries and resulting curtailments of
natural gas being experienced by such
interstate pipeline when compared to deliveries and resulting curtailments which are experienced as a result of orders issued under this subsection applicable to other
interstate pipelines (as determined by the President).
(2) Required notification from State
(A) [2] NotificationThe President shall not allocate supplies of natural gas under this subsection unless he is notified by the Governor of any State that—
(i)
a shortage of
natural gas supplies available to such
State exists or is imminent;
(3) Basis of findingTo the maximum extent practicable, the Governor shall submit, together with any notification under subparagraph (A), information upon which he has based his finding under such subparagraph, including—
(iv)
such other information which the President requests or which the Governor determines appropriate to apprise the President of emergency deliveries and transportation of interstate
natural gas needed by such
State.
(5) Consideration of alternative fuel availability
In issuing any order under this subsection the President shall consider the relative availability of alternative fuel to natural gas users supplied by the interstate pipeline ordered to make deliveries pursuant to this subsection.
(d) Allocation of user-owned gas
(1) Required findingThe President shall not allocate supplies of natural gas under this subsection unless he finds that—
(C)
the exercise of authority under this subsection is reasonably necessary to assist in meeting
natural gas requirements for such
high-priority uses;
(3) Consideration of economic feasibility of alternative fuels
In issuing any order under this subsection, the President shall consider the economic feasibility of alternative fuels available to the user which owned the natural gas subject to an order under this subsection.
(e) Limitation
No order may be issued under this section unless the President determines that such order will not require transportation of natural gas by any pipeline in excess of its available transportation capacity.
(f) Industry assistance
The President may request that representatives of pipelines, local distribution companies, and other persons meet and provide assistance to the President in carrying out his authority under this section.
(g) Compensation
(1) In general
If the parties to any order issued under subsection (b), (c), (d), or (h) fail to agree upon the terms of compensation for natural gas deliveries or transportation required pursuant to such order, the President, after a hearing held either before or after such order takes effect, shall, by supplemental order, prescribe the amount of compensation to be paid for such deliveries or transportation and for any other expenses incurred in delivering or transporting natural gas.
(2) Calculation of compensation for certain boiler fuel natural gasFor purposes of any supplemental order under paragraph (1) with respect to emergency deliveries pursuant to subsection (b), the President shall calculate the amount of compensation—
(A)
for supplies of
natural gas based upon the amount required to make whole the user subject to the prohibition order, but in no event may such compensation exceed just compensation prescribed in
section 717z of this title; and
(B)
for transportation, storage, delivery, and other services, based upon reasonable costs, as determined by the President.
(3) Compensation for other natural gas allocatedFor the purpose of any supplemental order under paragraph (1), if the party making emergency deliveries pursuant to subsection (c) or (d)—
(A)
indicates a preference for compensation in kind, the President shall direct that compensation in kind be provided as expeditiously as practicable;
(B) indicates a preference for compensation, or the President determines that, notwithstanding paragraph (A) of this subsection, any portion thereof cannot practicably be compensated in kind, the President shall calculate the amount of compensation—
(i)
for supplies of
natural gas, based upon the amount required to make the pipeline and its local distribution companies whole, in the case of any order under subsection (c), or to make the user from whom
natural gas is allocated whole, in the case of any order under subsection (d) including any amount actually paid by such pipeline and its local distribution companies or such user for volumes of
natural gas or higher cost synthetic gas acquired to replace
natural gas subject to an order under subsection (c) or (d); and
(ii)
for transportation, storage, delivery, and other services, based upon reasonable costs, as determined by the President. Compensation received by an
interstate pipeline under this subsection shall be credited to the account of any
local distribution company served by that pipeline to the extent ordered by the President to make such
local distribution company whole.
(h) Related transportation and facilities
The President may, by order, require any pipeline to transport natural gas, and to construct and operate such facilities for the transportation of natural gas, as he determines necessary to carry out any order under subsection (b), (c), or (d). Compensation for the costs of any construction or transportation ordered under this subsection shall be determined under subsection (g) and shall be paid by the person to whom supplies of natural gas are ordered allocated under this section.
(i) Monitoring
In order to effect the purposes of this part, the President shall monitor the operation of any order made pursuant to this section to assure that natural gas delivered pursuant to this section is applied to high-priority uses only.
(j) Commission study
Not later than June 1, 1979, the Commission shall prepare and submit to the Congress a report regarding whether authority to allocate natural gas, which is not otherwise subject to allocation under this part, is likely to be necessary to meet high-priority uses.
(k) “High-priority use” definedFor purposes of this section, the term “high-priority use” means any—
(2)
use of
natural gas in a commercial establishment in amounts less than 50
Mcf on a peak day; or
(3)
any use of
natural gas the curtailment of which the President determines would endanger life, health, or maintenance of physical property.
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