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The California Public Utilities Commission holds jurisdiction over intrastate natural gas and liquid petroleum gas pipelines within California. (PHMSA inspects interstate natural gas and liquid petroleum gas pipelines, as well.)
FERC reviews applications for construction and operation of interstate natural gas pipelines under the authority of section 7 of the Natural Gas Act. FERC review ensures that applicants certify that they will comply with Department of Transportation safety standards.
While royalties on oil and gas produced from state territory generally hover between 12.5% and 16.67%, state law gives the commissioner of the Department of Natural Resources the authority to vary those terms if doing so is deemed in the state's best interest.
Domestic natural gas markets are regulated in part by the Federal Energy Regulatory Commission . The commission's chief area of concern is the interstate natural gas market. Natural gas moves for the most part by pipeline in the United States.
In 2020, the Leonel Rondon Pipeline Safety Act was enacted as sections 202?206 of the Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2020 (PIPES Act of 2020, Pub. L. N 116?260).
Although the federal government is responsible for developing, issuing and enforcing pipeline safety regulations, most inspections are conducted by state regulatory agencies, which are responsible for regulation, inspection and enforcement of pipelines within state boundaries.