MCA Chapter 11

in effect

Miss. Code Ann. § 77-11-1 Declaration of purpose.

The purpose of this article is to make provision for the enforcement by the Mississippi Public Service Commission of Natural Gas Pipeline Safety Standards adopted both by the Mississippi Public Service Commission and by the U. S. Department of Transportation, pursuant to the provisions of Article 1, Chapter 3 of this title, and the Federal Natural Gas Pipeline Safety Act of 1968, 49 USC, sections 1671 et seq., by way of injunctive and monetary sanctions substantially the same as are provided under Section 1678 and Section 1679 of said federal act, so that the commission may certify as the regulatory authority as provided in said federal act.

Miss. Code Ann. § 77-11-3 Civil penalties.

Any person operating a public utility subject to the jurisdiction of the Mississippi Public Service Commission under subparagraph (ii) of paragraph (d) of Section 77-3-3, and Section 77-3-5, who violates any provision of any Natural Gas Pipeline Safety Standard adopted both by the United States Department of Transportation, pursuant to the provisions of the Federal Natural Gas Pipeline Safety Act of 1968, and by the commission pursuant to Article 1, Chapter 3, of this title, shall be subject to a civil penalty not to exceed one thousand dollars ($1,000.00), payable to the State of Mississippi for each such violation for each day that such violation persists. The maximum civil penalty shall not exceed two hundred thousand dollars ($200,000.00) for any related series of violations. Any such civil penalty may be imposed by the chancery court of the county in which the violation occurs or in which the person violating the same resides or has his or its principal place of business, upon complaint of the commission and after opportunity for a hearing thereon. Any such civil penalty may be compromised by the commission, subject to the approval of the court. In determining the amount of such penalty, or the amount agreed upon in compromise, the appropriateness of such penalty to the size of the business of the person charged, the gravity of the violation and the good faith of the person charged in attempting to achieve compliance, after notification of a violation, shall be considered. The amount of such penalty, when finally determined, or the amount agreed upon in compromise, may be deducted from any sums owing by the State of Mississippi to the person charged or may be recovered under judgment of said chancery court, and upon collection shall be paid to the treasury of the State of Mississippi.

Miss. Code Ann. § 77-11-5 Restraint of violations and enforcement of standards.

Pursuant to the provisions of Section 77-3-75, the chancery court, First Judicial District of Hinds County, Mississippi, shall have jurisdiction to restrain violations of the Natural Gas Pipeline Safety Standards adopted by both the United States Department of Transportation and the Mississippi Public Service Commission, and to enforce, by mandamus, injunction or other appropriate remedy, orders of said commission adopting such standards. Whenever practicable, the commission shall give notice to any person against whom an action for injunctive relief is contemplated and afford him an opportunity to present his views, and, except in the case of a knowing and willful violation, shall afford him reasonable opportunity to achieve compliance. However, the failure to give such notice and afford such opportunity shall not preclude the granting of appropriate relief. In any proceeding for criminal contempt for violation of an injunction or restraining order issued under this article, trial shall be by the court, or upon demand of the accused, by a jury and, upon demand of the accused, a jury trial for criminal contempt shall be transferred to the chancery court of the county in which the accused resides or has his principal place of business.

Miss. Code Ann. § 77-11-7 Application of penalties.

The penalties for injunction and monetary sanctions provided in this article apply only to the provisions of this article, and are separate and apart from those otherwise provided by Article 1, Chapter 3, of this title.

Miss. Code Ann. § 77-11-101 Commission shall provide for standards of safety and inspection of gas districts, municipal gas systems, and certain pipelines.

The Mississippi Public Service Commission is hereby vested with authority to provide for standards of safety and inspection of gas districts, or municipally owned and/or operated transmission or distribution of natural, artificial, or mixed natural and artificial gas, by means of transportation, transmission or distribution facilities and equipment municipally owned and/or operated by said municipality or gas district. To the maximum extent permissible under the Natural Gas Pipeline Safety Act of 1968, the commission is also hereby vested with authority to provide for standards of safety and inspection of facilities owned and/or operated as private pipelines, private pipeline carriers or private pipeline carriers by contract which are not engaged in the transmission, sale, sale for resale or distribution of gas to the public for compensation and which are not therefore subject to the general jurisdiction of the commission as public utilities, which said facilities are used for the intrastate transmission or distribution of natural, artificial and mixed natural and artificial gas by means of intrastate transportation, transmission or distribution facilities or equipment owned and/or operated by any such pipeline.

Miss. Code Ann. § 77-11-103 Commission shall prescribe standards and procedures.

To carry out the provisions of this article, the public service commission shall prescribe the safety standards and inspection procedures for said gas districts or municipally owned and/or operated gas systems and for said private pipelines, private pipeline carriers and private pipeline carriers by contract.

Miss. Code Ann. § 77-11-105 Enforcement of federal safety standards.

The public service commission shall have the right, power and authority to provide and make certification, reports and information to the secretary of the United States Department of Transportation; to enter into agreements with said secretary to carry out the purposes of this article; to enforce federal safety standards in the State of Mississippi in lieu of enforcement by the said department of transportation; and to exercise regulatory jurisdiction over the safety of pipeline systems owned and/or operated by gas districts or municipalities and said private pipelines, private pipeline carriers and private pipeline carriers by contract in the transportation of gas as permitted by the Natural Gas Pipeline Safety Act of 1968.

Miss. Code Ann. § 77-11-107 Promulgation of rules and regulations; inspection; right of access.

In order to determine whether or not each gas district or municipally owned and/or operated gas system or pipeline or privately owned or operated gas pipeline is operating in compliance with the required safety standards and to enforce such compliance, the Mississippi Public Service Commission shall have the right, power and authority to promulgate reasonable rules and regulations to facilitate such purpose. Authorized personnel of the commission shall be authorized to inspect all such gas districts, municipally or privately owned and/or operated gas systems, pipelines, facilities and equipment and shall have the right of access and entry to all buildings and property owned, leased and operated by such systems. Other information shall be made available to the commission upon request.

Miss. Code Ann. § 77-11-109 Penalty.

Each gas district or municipally owned utility or privately owned and/or operated gas pipeline in the State of Mississippi shall be subject to the same penalty as other gas utilities for failure to comply with the gas pipeline safety standards adopted by the Mississippi Public Service Commission.

Miss. Code Ann. § 77-11-111 Limitation of commission’s authority.

This article authorizes the Mississippi Public Service Commission to exercise jurisdiction over gas pipeline safety and inspection of gas districts or municipally owned and/or operated gas utilities or privately owned and operated gas pipelines which do not sell, transport or distribute gas to the public, and whose facilities are used for the intrastate transmission or distribution of natural, artificial and mixed natural and artificial gas, but all other operations, services and rates of gas districts or municipally owned and/or operated gas utilities or such privately owned and operated gas pipelines which do not sell, transport or distribute gas to the public shall remain exclusively with the gas districts or municipality or municipally owned and/or operated gas utility or with the owner and/or operator of such private pipeline not serving the public.

Miss. Code Ann. § 77-11-201 Levy of tax on municipal gas utilities to provide commission with funds for safety regulation and inspection; funding of agency expenses; deposit of monies into State General Fund.

All reasonable and necessary operating expenses of the administration of the duties imposed by law upon the Public Service Commission, including the salaries of personnel, in its regulation, inspection and supervision of municipally owned and/or operated gas utilities operating within the State of Mississippi shall be provided as follows: There is hereby levied a tax. The amount of said tax is the sum of Twenty-five Thousand Dollars ($25,000.00) per year which shall be prorated by the State Tax Commission among the municipally owned and/or operated gas utilities which are subject to the tax levied by this section each year, according to the gross revenue of each of such utilities from their intrastate operation during the calendar year preceding the assessment. Each utility which is subject to the tax levied by this section shall file a statement of such gross revenue by April 1 of each year showing the gross revenue for the preceding year’s operation. These statements of gross revenue shall be filed with the commission and a copy thereof filed with the State Tax Commission. The State Tax Commission shall thereupon calculate the pro rata amount of tax to be paid by each of said utilities in order to provide the total amount above stated and shall thereupon submit a statement thereof to the respective utilities and the amount shown due in such statements to the respective utilities shall be paid by the respective utilities within thirty (30) days thereafter to the State Tax Commission. The State Tax Commission shall pay such funds into the State Treasury on the same day collected to the credit of the “Municipality Owned and/or Operated Gas Utilities Special Fund.” All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provisions of such chapter, and all other duties and requirements imposed upon taxpayers, shall apply to all persons liable for taxes under the provisions of this chapter, and the Tax Commissioner shall exercise all the power and authority and perform all the duties with respect to taxpayers under this chapter as are provided in the Mississippi Sales Tax Law except where there is a conflict, then the provisions of this chapter shall control. The term “gross revenue” as used in this section shall be deemed to be the total amount of all revenue derived by each of such utilities from its intrastate operations and the State Tax Commission is hereby authorized to make such audits as may be deemed necessary of any and all records of such utilities in order to correctly determine the amount of such gross revenue. It shall be the duty of the Department of Finance and Administration to advise the commission of the amount of money on hand from time to time. All expenses of the commission authorized by this section or any other act of the Legislature shall be paid by the State Treasurer upon warrants issued by the Department of Finance and Administration, which warrants shall be issued upon requisition signed by the chairman of the commission and countersigned by one (1) of the commissioners, and said requisition shall show upon its face the purpose for which the payment is being made by reference to the minute book in which such payment was authorized. It shall be unlawful for any person to withdraw any money from said fund other than by requisition issued as provided herein. A record of all requisitions issued by the commission showing to whom, for what purpose, and date issued shall be placed upon the minute books of the commission and shall become a part of the official records of the commission. The books and accounts of the commission shall be audited at the end of each fiscal year, and at any other time deemed necessary, by the State Auditor and a copy of such audits shall be furnished to the Governor and the commission. The State Auditor may prescribe such further accounting procedure as he deems necessary for the withdrawal of funds by the commission from said special fund. All requisitions drawn in compliance with this section shall be honored by the Department of Finance and Administration and the funds disbursed in accordance therewith. The commission shall file a report at each regular session of the Legislature showing the expenditure of all funds by the commission. All proceeds of the above-mentioned tax are hereby allocated to the commission for the purpose of this section. In the event the funds provided by said tax exceed the amount necessary for the purposes of this section at the end of any fiscal year, the commission shall certify the amount which the commission estimates will be necessary for the commission for each fiscal year to the State Tax Commission, and the State Tax Commission shall reduce the tax hereby imposed to such amount for the next fiscal year and shall collect the proportionate amount thereof as above provided. From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law. From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

Miss. Code Ann. § 77-11-301 Legislative findings.

The Legislature of the State of Mississippi hereby finds that the public interest will be served by fostering the construction and operation of intrastate gas pipelines in order to secure for public and private needs a dependable supply of gas which will be produced within this state. The Legislature further finds that an emergency exists because numerous commercial enterprises have been closed or restricted in operation due to a shortage of gas resulting in a loss of employment and industrial capacity within this state and threatens irreparable injury to life or property, and the possibility exists that supplies of gas for residential and health related purposes may be restricted in the future. In order to assist in alleviating these shortages, both actual and potential, the Legislature enacts this legislation.

Miss. Code Ann. § 77-11-303 Application of article.

The provisions of this article shall be applicable to all intrastate gas pipelines and related facilities, which would otherwise be a public utility as defined in Section 77-3-3, Mississippi Code of 1972, for the transmission, sale, sale for resale, and distribution of natural or artificial or mixed gas used within this state for consumption by industrial users or to a public utility or a public utility owned or operated by any municipality. The provisions of this article shall also be applicable in the manner set forth herein to the gas flowing through such pipelines.

Miss. Code Ann. § 77-11-305 Definitions.

For the purposes of this article, the following words shall have the meaning ascribed herein unless the context shall otherwise require: “Corporation” shall mean a private or public corporation, municipality, association, a joint stock association or a business trust. “Person” shall include a natural person, a partnership of two (2) or more persons having a joint or common interest, a cooperative, non-profit, limited dividend, or mutual association, a corporation or any other legal entity. “Municipality” shall mean any incorporated city or town or village. “Intrastate gas pipeline” shall mean the entire pipeline system owned by an entity carrying gas produced wholly within this state, which is not a field gathering system, including the primary gas pipeline and all lateral supply lines and related facilities extending therefrom to the point of sale to any industrial users, a public utility, or a public utility owned or operated by a municipality. “Public utility” as used in this article shall mean any entity as defined by Section 77-3-3(d)(ii), Mississippi Code of 1972. “Commission” shall mean the Mississippi Public Service Commission.

Miss. Code Ann. § 77-11-307 Exemption from requirements imposed on public utilities.

No person who shall construct, acquire, extend or operate an intrastate gas pipeline for transmitting natural, manufactured or mixed gas for sale, sale for resale, or distribution for consumption by industrial users, public utilities, or a public utility owned or operated by a municipality, shall be deemed a public utility or be required to obtain a gas certificate or public convenience and necessity from the commission to engage in the foregoing activities. Any person engaged in the transmission, sale, sale for resale, or distribution of natural, artificial, or mixed natural and artificial gas to industrial users, public utilities, or public utilities owned or operated by municipalities, by means of transportation, transmission or distribution in an intrastate gas pipeline shall not be deemed a public utility or be required to obtain a gas certificate of public convenience and necessity from the commission.

Miss. Code Ann. § 77-11-309 Restriction on transmission, sale or distribution to industrial user serviced by gas public utility.

There shall be no transmission, sale, sale for resale, or distribution of natural, artificial, or mixed gas by an intrastate pipeline to an industrial user being served by a gas public utility holding a gas certificate of public convenience and necessity issued by the commission or to an industrial user to be located within such certificated area unless the gas public utility holding such certificate of public convenience and necessity shall have filed with the commission a statement that it is either unwilling or unable to serve said user. Provided, however, that nothing contained in this article shall prevent the sale or transmission of natural gas to an industrial user by the producer of such gas or the sale of natural gas in or within the vicinity of the field where the gas is produced.

Miss. Code Ann. § 77-11-311 Jurisdiction to enforce pipeline safety standards; natural gas or electric power public utility not exempt from regulation.

The commission shall have jurisdiction over an intrastate gas pipeline for the enforcement of natural gas pipeline safety standards, provided that nothing in this article shall be construed to exempt any natural gas or electric power public utility from regulation by the Public Service Commission as set out in Section 77-3-35, Mississippi Code of 1972.