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HEARINGS

BEFORE A

SUBCOMMITTEE OF THE COMMITTEE ON
INTERSTATE AND FOREIGN COMMERCE

UNITED STATES SENATE

EIGHTIETH CONGRESS

FIRST SESSION

ON

S. 734 and S. 1028

BILLS TO AMEND THE NATURAL GAS ACT,

APPROVED JUNE 21, 1938, AS AMENDED

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WALLACE H, WHITE, JR., Maine, Chairman CHARLES W. TOBEY, New Hampshire EDWIN C. JOHNSON, Colorado, CLYDE M. REED, Kansas

TOM STEWART, Tennessee OWEN BREWSTER, Maine

ERNEST W. MCFARLAND, Arizona ALBERT W. HAWKES, New Jersey

WARREN G. MAGNUSON, Washington. E. H. MOORE, Oklahoma

FRANCIS J. MYERS, Pennsylvania
HOMER E. CAPEHART, Indiana

BRIEN MCMAHON, Connecticut
EDWARD JERRETT, Clerk

SUBCOMMITTEE ON S. 734 AND S. 1028

E. H. MOORE, Oklahoma, Chairman HOMER E. CAPEHART, Indiana

TOM STEWART, Tennessee

II

CONTENTS

77

Statement of

Page

Alpern, Anne X., city solicitor of Pittsburgh, representing the United

States Conference of Mayors and the National Institute of Municipal
Law Officers, Pittsburgh, Pa..

McGrath, Thomas J., representing the National Coal_Association,

Eastern Gas and Fuel Associates, Chesapeake & Ohio Railway Co.,

and Anthracite Producers in the State of Pennsylvania, 729

Fifteenth Street, NW., Washington, D. C.-

63, 89

Rizley, Hon. Ross, a Representative in Congress from the State of

Oklahoma.

14

Smith, Hon. Nelson Lee, Chairman, Federal Power Commission,

Washington, D. C.--

35, 93

Statement filed by-

Baltimore & Ohio Railroad System.-

102

The Central Railroad Co. of New Jersey -

102

The Delaware, Lackawanna & Western Railroad Co.

102

Erie Railroad Co..

102

Lehigh Railroad Co..

102

New York Central System.

102

New York, Susquehanna & Western Railroad Co.

102

Reading Co.

102

Crimmins, John N., Koppers Co., Inc., Koppers Building, Pittsburgh,

Pa..

103

Schreiber, John, secretary, Eastern States Retail Solid Fuel Con-

ference, 41 East Forty-second Street, New York, N. Y...

106

Letters received from-
Truman, Hon. Harry S., President of the United States -

38
Wyer, William, chief executive officer, the Central Railroad Co. of
New Jersey, Jersey City Terminal, Jersey City, N. J.

102

Report of—

Federal Power Commission, Washington, D. C.---

11, 36

Brief submitted by-

Natural Gas Industry Committee, FPC Docket G-580_

168

Independent Petroleum Association of America, FPC Docket G-580. 109

Mid-Continent Oil & Gas Association, FPC Docket G-580.--

210

Text of-

S. 734.

1

S. 1028 (eminent domain bill).

4

H. R. 4051 (Rizley bill as passed by the House)

6

Senate Report No. 429 on S. 1028.

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AMENDMENTS TO THE NATURAL GAS ACT

TUESDAY, APRIL 29, 1947

UNITED STATES SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON
INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C. The subcommittee met at 10 a. m., pursuant to call, in the Interstate and Foreign Commerce Committee room, United States Capitol, Senator E. H. Moore, chairman of the subcommittee, presiding.

Present: Senators Moore and Stewart.
Also present: Representative Rizley.
Senator MOORE. T'he committee will come to order.

Senator Capehart, Senator Stewart, and I have been named as a subcommittee by the chairman of the Interstate and Foreign Commerce Committee to conduct hearings on S. 734 and S. 1028.

The bills will be inserted in the record at this point. (The bills are as follows:)

[S. 734, 80th Cong., 1st sess.] A BILL To amend the Natural Gas Act approved June 21, 1938, as amended Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (b) of section 1 of the Natural Gas Act, approved June 21, 1938, is amended to read as follows:

"(b) The provisions of this chapter shall apply, to the extent hereafter provided, to the transportation of natural gas in interstate commerce, to the sale, after such transportation, in interstate commerce of natural gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use, and to natural-gas companies engaged in such transportation or sale, but shall not apply to any other transportation or sale of natural gas or to its transportation between the well or wells where produced and the point of its delivery to or reception in the interstate trunk transmission facilities of a natural-gas company or to any sale thereof at or prior to such point of delivery or reception or to the production or gathering of natural gas, or to the producing, gathering, treating, or processing facilities utilized or operations conducted in handling or preparing such gas for delivery or reception at such point, or to the local distribution of natural gas or to local distribution facilities; and nothing in this chapter shall be construed as authorizing the Commission to prohibit or restrict the transportation or sale in interstate commerce of gas for utilization for any purpose for which such gas may lawfully he used."

"(c) The jurisdiction of the Commission under this Act, including but not limited to rate regulatory authority and supervisory control, shall not extend to or over any transportation or sale of facility or operation to which, under the provisions of subdivision (b) of this section, the provisions of this chapter shall not apply. This limitation of jurisdiction shall control all other provisions of this Act."

SEC. 2. Section (5) of section 2 of said Natural Gas Act is amended to read as follows:

Natural gas' means either gas in its natural state as produced from the well, or residue gas from gas in its natural state, from casinghead gas or from any

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