2005 Nevada Revised Statutes - Chapter 708 — Oil Pipelines

CHAPTER 708 - OIL PIPELINES

NRS 708.010 Commissiondefined.

NRS 708.020 Owner,operator or manager of oil pipeline declared to be common carrier.

NRS 708.025 Intrastatecarrier must obtain certificate of public convenience and necessity.

NRS 708.035 Certificateof public convenience and necessity: Hearing; considerations; terms andconditions.

NRS 708.050 Rightto construct and maintain pipeline along, on or under public stream or road:Conditions; compensation for damage to public road.

NRS 708.060 Powerof Commission to establish and enforce rates and regulations; procedure;reimbursement of excessive charges.

NRS 708.070 Exchangeof tonnage of crude petroleum; installation of connections and facilities;regulations of Commission pertaining to marketable oil, temperature, leakageand evaporation.

NRS 708.080 Publicationof tariffs; reports; investigation of books; limitation on disclosure ofreports by Commission; hearings and enforcement of orders.

NRS 708.090 Discriminationbetween shippers or in charging for services prohibited; ratable transportationwhen production exceeds capacity of pipeline.

NRS 708.100 Commonpurchaser: Duties; discrimination prohibited.

NRS 708.110 Discriminationin receipt and transportation of crude oil or petroleum prohibited.

NRS 708.120 Regulationsof Commission to prevent waste of oil or dangerous operations.

NRS 708.130 Applicabilityof chapter.

NRS 708.140 Penalties.

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NRS 708.010 Commissiondefined. As used in this chapter, Commissionmeans the Public Utilities Commission of Nevada.

[Part 2:227:1921; NCL 4946](NRS A 1997, 1958)

NRS 708.020 Owner,operator or manager of oil pipeline declared to be common carrier. Every person, firm, corporation, partnership, joint-stockassociation or association of any kind whatever:

1. Owning, operating or managing any pipeline or anypart of any pipeline within the State of Nevada for the transportation of crudeoil or petroleum to or for the public for hire, or engaged in the business oftransporting crude oil or petroleum by pipeline;

2. Owning, operating or managing any pipeline or anypart of any pipeline for the transportation of crude oil or petroleum to or forthe public for hire, which pipeline is constructed or maintained upon, along,over or under any public road or highway, or in favor of whom the right ofeminent domain exists;

3. Owning, operating or managing any pipeline or anypart of any pipeline or pipelines for transportation to or for the public forhire, of crude oil or petroleum, which pipeline or pipelines is or may beconstructed, operated or maintained across, upon, along, over or under theright-of-way of any railroad corporation or other common carrier required bylaw to transport crude oil or petroleum as a common carrier; or

4. Owning, operating or managing or participating inownership, operation or management, under lease, contract of purchase,agreement to buy or sell, or other agreement or arrangement of any kindwhatever, any pipeline or pipelines, or part of any pipeline, for thetransportation from any oil field or place of production within the State ofNevada to any distributing, refining or marketing center, or reshipping pointthereof, within this state, of crude oil or petroleum bought of others or ownedby others,

is herebydeclared to be a common carrier and subject to the provisions of this chapter.

[Part 1:227:1921; NCL 4945]

NRS 708.025 Intrastatecarrier must obtain certificate of public convenience and necessity. It is unlawful for any oil pipeline carrier to operate as acarrier in intrastate commerce within this state without first having obtaineda certificate of public convenience and necessity from the Commission.

(Added to NRS by 1969, 877)

NRS 708.035 Certificateof public convenience and necessity: Hearing; considerations; terms andconditions.

1. Upon the filing of an application for a certificateof public convenience and necessity, the Commission shall fix a time and placefor hearing thereon, and shall proceed in the manner according to theprovisions of the laws of this state made applicable thereto.

2. Before granting a certificate of public convenienceand necessity to an applicant, the Commission shall take into consideration:

(a) Other authorized facilities in the territory forwhich a certificate is sought;

(b) The public necessity and convenience to be accordedby the service offered by such applicant; and

(c) Whether the applicant is fit, willing and able toperform the services of a common carrier.

3. The Commission may, under such rules of proceduregoverning the application therefor as it may prescribe, issue a certificate ofpublic convenience and necessity to an oil pipeline carrier, or issue it forthe partial exercise only of the privilege sought, and may attach to theexercise of the rights granted by such certificate such terms and conditionsas, in its judgment, the public convenience and necessity may require.

(Added to NRS by 1969, 877)

NRS 708.050 Rightto construct and maintain pipeline along, on or under public stream or road:Conditions; compensation for damage to public road.

1. The right to lay, maintain and operate pipelines,together with telephone and telegraph lines incidental to and designated foruse only in connection with the operations of those pipelines, along, across orunder any public stream or highway in this state, is hereby conferred upon allpersons coming within any of the definitions of common carrier pipelines containedin NRS 708.020, who have obtained acertificate of public convenience and necessity as provided in NRS 708.025 and 708.035.

2. In the exercise of the privileges herein conferred,such pipelines shall compensate the county or counties for any damage done tothe public road or highway in the laying of pipelines, telegraph or telephonelines, along or across the same.

3. This section does not:

(a) Grant any pipeline company the right to use anypublic street or alley of any incorporated city except by express permissionfrom the city or governing authority thereof.

(b) Allow any company to use any street or alley of anunincorporated town, except by express permission of the board of countycommissioners of the county in which the town is situated.

[3:227:1921; NCL 4947](NRS A 1969, 878; 1987,1730)

NRS 708.060 Powerof Commission to establish and enforce rates and regulations; procedure;reimbursement of excessive charges.

1. The Commission shall have the power:

(a) To establish and enforce rates of charges andregulations for gathering, transporting, loading and delivering crude oil orpetroleum by such common carriers in this state, and for the use of storagefacilities necessarily incident to such transportation; and

(b) To prescribe and enforce rules and regulations forthe government and control of such common carriers in respect to theirpipelines and receiving, transferring and loading facilities.

2. The Commission shall exercise such power uponpetition by any person showing a substantial interest in the subject.

3. No order establishing or prescribing rates, rulesand regulations shall be made except after a hearing and at least 10 days andnot more than 30 days notice to the person, firm, corporation, partnership,joint-stock association, or association owning or controlling and operating ormanaging the pipeline or pipelines affected.

4. If any rate shall be filed by any pipeline, and acomplaint against the same or a petition to reduce the same shall be filed byany shipper, and such complaint is sustained, in whole or in part, all shipperswho shall have paid the rates so filed by the pipeline company shall have theright to reparation reimbursement of all excess in transportation charges sopaid over and above the proper rate as finally determined on all shipments madeafter the date of the filing of such complaint.

[4:227:1921; NCL 4948]

NRS 708.070 Exchangeof tonnage of crude petroleum; installation of connections and facilities;regulations of Commission pertaining to marketable oil, temperature, leakageand evaporation.

1. Every common carrier as defined in NRS 708.020 shall exchange crude petroleumtonnage with each like common carrier, and the Commission shall have the powerto require such connections and facilities for the interchange of such tonnageto be made at every locality reached by both pipelines whenever a necessitytherefor exists, subject to such rates and regulations as may be made by theCommission. Any such common carrier under like rules and regulations shall berequired to install and maintain facilities for the receipt and delivery ofcrude oil and petroleum of patrons at all points on such pipeline.

2. No carrier shall be required to receive ortransport any crude oil or petroleum except such as may be marketable underrules and regulations to be prescribed by the Commission, which the Commissionis hereby empowered and required to prescribe.

3. The Commission is also empowered and required tomake rules for the ascertainment of the amount of water and other foreignmatter in oil tendered for transportation, and for deduction therefor and forthe amount of deduction to be made for temperature, leakage and evaporation.

4. The recital herein of particular powers of theCommission shall not be construed to limit the general powers conferred uponthe Commission by this chapter.

5. Until set aside or vacated by some decree or orderof a court of competent jurisdiction, all orders of the Commission as to anymatter within its jurisdiction shall be accepted as prima facie evidence oftheir validity.

[5:227:1921; NCL 4949]

NRS 708.080 Publicationof tariffs; reports; investigation of books; limitation on disclosure ofreports by Commission; hearings and enforcement of orders.

1. Such common carriers of crude oil or petroleumshall make and publish their tariffs under such rules and regulations as may beprescribed by the Commission.

2. The Commission shall require such common carriersto make reports, and may investigate their books and records kept in connectionwith such business, but no publicity shall be given by the Commission to thereports as to the stock of crude oil or petroleum on hand of any particularpipeline. In its discretion, the Commission may make public the aggregateamounts held by all the pipelines making such reports, and of their aggregatestorage capacity.

3. The Commission shall have the power and authority:

(a) To hear and determine complaints.

(b) To require attendance of witnesses and pay theirexpenses.

(c) To institute suits and sue out such writs andprocess as may be necessary for the enforcement of its orders.

[6:227:1921; NCL 4950](NRS A 1971, 225)

NRS 708.090 Discriminationbetween shippers or in charging for services prohibited; ratable transportationwhen production exceeds capacity of pipeline.

1. No such common carrier in its operations as suchshall discriminate against or between shippers in regard to facilitiesfurnished or service rendered or rates charged under the same or similarcircumstances in the transportation of crude oil or petroleum; nor shall therebe any discrimination in the transportation of crude oil or petroleum producedor purchased by itself, directly or indirectly. In this connection, thepipeline shall be considered as a shipper of the crude oil or petroleumproduced or purchased by itself, directly or indirectly, and handled throughits facilities.

2. No such carrier in its operations shall directly orindirectly charge, demand, collect or receive from anyone a greater or lesscompensation for any service rendered than from another for a like andcontemporaneous service; but this shall not limit the right of the Commissionto prescribe rates and regulations different from or to some places from otherrates or regulations for transportation from or to other places, as it may determine;nor shall any carrier be guilty of discrimination when obeying any order of theCommission.

3. When there shall be offered for transportation morecrude oil or petroleum than can be immediately transported, the common carriershall transport oil from each person and producer ratably, in proportion to theaverage daily production; but no such common carrier shall be required toreceive for shipment from any person, firm, corporation or association ofpersons more than 3,000 barrels of crude oil or petroleum in any 1 day.

[7:227:1921; NCL 4951]

NRS 708.100 Commonpurchaser: Duties; discrimination prohibited.

1. Every person, firm, corporation, joint-stockassociation or other association which is engaged in the business of purchasingcrude oil or petroleum produced in the State of Nevada, using in connectionwith such purchase a pipeline or pipelines within this state, shall be deemed acommon purchaser thereof, and shall purchase all of the oil or petroleum in thevicinity thereof which may be reasonably reached by its pipelines and gatheringbranches, without discrimination in favor of one person as against another, andshall fully perform all the duties of a common purchaser. If it shall be unableto purchase and transport all of the oil and petroleum produced and offered toit for sale, then it shall purchase and transport oil from each person andproducer offering to sell his or its oil to the common purchaser ratably, inproportion to the average daily production.

2. Such common purchasers are hereby expresslyprohibited from discriminating in price or amount for like grades of oil asbetween producers or persons; and if such purchaser is likewise a producer, itis hereby prohibited from discriminating in favor of its own production or storage,or production or storage in which it may be interested, directly or indirectly,in whole or in part, and its own production and storage shall be treated asthat of any other person or producer.

[8:227:1921; NCL 4952]

NRS 708.110 Discriminationin receipt and transportation of crude oil or petroleum prohibited. Subject to the provisions of this chapter and the rulesand regulations which may be prescribed by the Commission, every such commoncarrier shall receive and transport crude oil or petroleum offered to it fortransportation and shall receive and transport the same and perform its otherduties with respect thereto without discrimination.

[11:227:1921; NCL 4955]

NRS 708.120 Regulationsof Commission to prevent waste of oil or dangerous operations. The Commission, when necessary, shall make and enforcerules and regulations either general in their nature or applicable toparticular oil fields for the prevention of:

1. Actual waste of oil; or

2. Operations in the field dangerous to life orproperty.

[9:227:1921; NCL 4953]

NRS 708.130 Applicabilityof chapter. The provisions of this chaptershall not apply to:

1. Those pipelines which are limited in their use tothe wells, stations, plants and refineries of their owner and which are not apart of the pipeline transportation system of any common carrier as defined in NRS 708.020.

2. Any property of such a common carrier which is nota part of or necessarily incident to its pipeline transportation system.

[Part 1:227:1921; NCL 4945]

 

NRS 708.140 Penalties.

1. Any common carrier as defined in NRS 708.020 which violates any provision ofthis chapter or fails to perform any duty imposed by this chapter or any validorder of the Commission, when not stayed or suspended by an order of a court,is subject to a penalty of not more than $1,000 for each offense.

2. Any officer of a common carrier or common purchaserwho willfully violates any of the provisions of this chapter forbiddingdiscrimination on the part of common carriers is guilty of a gross misdemeanor.Each violation of the provisions of this chapter shall be deemed a separateoffense.

[10:227:1921; NCL 4954](NRS A 1967, 666; 1979,202)

 

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