New Mexico § 62-6-4.1 - Contract carriage of natural gas

§ 62-6-4.1. Contract carriage of natural gas

A. The intent and purpose of this section is to encourage lower costs of natural gas

for New Mexico consumers by providing competition in natural gas markets through contract

carriage. Lower fuel costs are an integral part of New Mexico's economic development efforts

because they preserve existing jobs, facilitate expansion of the state's businesses

and provide incentives for new industry to locate in New Mexico. B. The commission shall, by rule or order, authorize and require the nondiscriminatory

and nonpreferential transportation of natural gas by any person subject to the jurisdiction

of the commission for a seller or purchaser of natural gas to the extent of available

capacity and subject to Subsections C and D of this section. C. The commission may, in its discretion, impose such terms and conditions on the

transportation of natural gas as may be necessary to safeguard deliverability and

operational efficiency and to prevent undue hardship and anticompetitive conduct by

a public utility. D. The rates and charges for the transportation of natural gas under this section

shall be just, reasonable, nondiscriminatory and subject to approval by the commission. E. For purposes of this section, “transportation” means exchange, backhaul, displacement

or any other means of transporting and includes gathering. F. A public utility shall be prohibited from the marketing and brokering of natural

gas for delivery within New Mexico under this section. This prohibition shall not exclude a public utility from transporting natural gas

for an affiliated corporation. Any contract to transport natural gas for an affiliate shall be an arms-length agreement

containing no terms that are unavailable to other-end users, gas brokers or marketers. G. The commission, upon a finding that a public utility is in violation of this section,

may impose upon the utility a civil penalty not to exceed an amount three times the

damages established by the complainant in the commission proceeding and issue such

orders, including but not limited to a cease and desist order, to assure the nondiscriminatory

and nonpreferential transportation of natural gas.