U.S. Code » Title 15 » Chapter CHAPTER 60— NATURAL GAS POLICY › Subchapter SUBCHAPTER VI— COORDINATION WITH NATURAL GAS ACT; MISCELLANEOUS PROVISIONS

15 U.S.C. § 3432

Effect on State laws

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(a) Authority to prescribe maximum lawful prices

Nothing in this chapter shall affect the authority of any State to establish or enforce any maximum lawful price for the first sale of natural gas produced in such State.

(b) Common carriersNo person shall be subject to regulation as a common carrier under any provision of Federal or State law by reason of any transportation—(1) pursuant to any order under section 3362(c) or section 3363(b), (c), (d), or (i) of this title; or(2) authorized by the Commission under section 3371(a) of this title.(Pub. L. 95–621, title VI, § 602, Nov. 9, 1978, 92 Stat. 3411; Pub. L. 101–60, § 3(b)(8), July 26, 1989, 103 Stat. 159.)Editorial NotesAmendments

1989—Subsec. (a). Pub. L. 101–60 struck out “lower” after “prescribe” in heading and struck out before period at end “which does not exceed the applicable maximum lawful price, if any, under subchapter I of this chapter”.

Statutory Notes and Related SubsidiariesEffective Date of 1989 Amendment

Amendment by Pub. L. 101–60 effective Jan. 1, 1993, see section 3(b) of Pub. L. 101–60, set out as a note under section 3372 of this title.

Notes of Decisions
Cited in 15 cases, 1981–2001 · leading case: Exxon Corp. v. Eagerton, 462 U.S. 176 (1983).
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Exxon Corp. v. Eagerton, 462 U.S. 176 (1983). “3411 , as set forth in 15 U. S. C. §3432 (a) (1976 ed., Supp. V), states that “[n]othing in this chapter shall affect the authority of any State to establish or enforce any maximum lawful price for the first sale of natural gas produced in such State which does not exceed the…”
Sharon Steel Corp. v. City of Fairmont, 334 S.E.2d 616 (W. Va. 1985). “However, after analyzing the NGPA and particularly Section 602(a), 15 U.S.C. § 3432 (a), which allows states to set lower prices on intrastate sales below that set by the NGPA for interstate sales, the Supreme Court concluded: “We reach a different conclusion with respect to the…”
Ken Moorhead Oil Co. v. Federated Mut. Ins., 476 S.E.2d 481 (S.C. 1996). “” 15 U.S.C. § 3432 (a). In response to the federal Act, the Kansas Legislature passed an act forbidding, inter alia, consideration of ceiling prices set by federal authorities in the application of governmental price escalator clauses.”
Superior Oil Co. v. W. Slope Gas Co., 549 F. Supp. 463 (D. Colo. 1982). “Section 602(a) of the NGPA [ 15 U.S.C. § 3432 (a)] provides that nothing in the Act “shall effect the authority of any State to establish or enforce any maximum lawful price for the first sale of natural gas produced in such State which does not exceed the applicable maximum…”
Mobil Oil Expl. & Producing Se., Inc. v. Fed. Energy Regulatory Comm'n, 885 F.2d 209 (5th Cir. 1989). “See NGPA Section 602(b), 15 U.S.C. § 3432 (b). . 5 U.S.C. § 551 et seq.”
Energy Reserves Grp., Inc. v. Kansas Power & Light Co., 630 P.2d 1142 (Kan. 1981). “) § 602 ( 15 U.S.C. § 3432 ) provides that nothing in the NGPA “shall affect the authority of any State to establish or enforce any maximum lawful price for the first sale of natural gas produced in such State which does not exceed” the maximum ceiling price fixed by the act.”
Pennzoil Co. v. Pub. Serv. Comm'n, 327 S.E.2d 444 (W. Va. 1985). · cites it 3× “§§ 3314 , 3315, subject to an important qualification contained in Section 602(a) of the NGPA, 15 U.S.C. § 3432 (a): “Authority to prescribe lower maximum lawful prices.”
In Re Cal. Ret. Nat. Gas & Elec. Anti. Lit., 170 F. Supp. 2d 1052 (D. Nev. 2001). “" 15 U.S.C. § 3432 (a). [7] Though the court in ARCO separates out three exceptions to the well-pleaded complaint doctrine — complete preemption of claims, claims that are "necessarily federal in character," and claims raising a "substantial, disputed federal question," 213 F.”
Kentucky West Virginia Gas Co. v. Pennsylvania Pub. Util. Comm'n, 650 F. Supp. 659 (M.D. Penn. 1986). “They point to section 602(a), 15 U.S.C. § 3432 (a), which permits a state “to establish or enforce any maximum lawful price for the first sale of natural gas in such State” and argue from it that Pennsylvania is illegally trying to regulate the first sale of natural gas in other…”
Kerr-McGee Corp. v. N. Utils., Inc., 673 F.2d 323 (10th Cir. 1982). “See 15 U.S.C. § 3432 (a). 8 “The conference agreement also cedes the Federal Government’s authority to further limit the operation of indefinite price escalator clauses to State governments wishing to do so.”
Nat'l Fuel Gas Distrib. Corp. v. TGX Corp., 950 F.2d 829 (2d Cir. 1991). “See 15 U.S.C. § 3432 (a) (1988) (NGPA does not prevent state from setting lower maximum price for gas than federal law allows).”
Superior Oil Co. v. W. Slope Gas Co., 758 F.2d 500 (10th Cir. 1985). “Also the Act allows the states to restrict the operation of escalation clauses in providing that nothing in the Act shall affect state authority to enforce a maximum price for first sales which does not exceed the applicable maximum lawful price ( 15 U.S.C. § 3432 (a)). Colorado…”
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— 15 U.S.C. § 3432(a) — 1 case
Pennzoil Co. v. Pub. Serv. Comm'n, 327 S.E.2d 444 (W. Va. 1985). “§§ 3314 , 3315, subject to an important qualification contained in Section 602(a) of the NGPA, 15 U.S.C. § 3432 (a): “Authority to prescribe lower maximum lawful prices.”
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