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1979 Arkansas Attorney General Reports and Opinions 1 (1979)

handle is hein.sag/sagar0048 and id is 1 raw text is: STATE OF ARKANSAS OFFICE OF THE ATTORNEY GENERAL JUSTICE SUILDING, LITTLE ROCK BILL CLINTON ATTORNKYN aL January 3, 1979 OPINION No. 79-1 Mr. Ralph A. Dumas, Director Arkansan Oil and Gas Commission 314 East Oak Street El Dorado, Arkansas 71730 Dear Mr. Dumas: This will acknowledge receipt of your letter of December 11, 1978, requesting',the official opinion of ;his office with reapect to the question whether the Arkansas Oil and Gas Commissiote authorized under its enabling legislation to function as the jurlisdict4.nal agency ,in Arkansas for the implementation of the Natural Gas-Policy Act of'i978 and regulations of the Federal Enefgy Regulatory Commission proposed thereunder. Before answering the question you pose, a brief background state- ment would appear to be appropriate. The President of the United States signed into law on November 9, 1978, the Natural Gas Policy Act of 1978 (NGPA). By the passage of this Act Congress has mandated a new legislative framework for the regulation of the natural gas industry. This new law will affect the sales, transmission and distribution of natural gas throughout the United States. Intrastate transactions as well as interstate transactions will be regulated. The federal agency which has been authorized and directed to administer the NGPA is the Federal Energy Regulatory Commission (FERC), the successor to the Federal Power Commission. On November 13, 1978, FERC promulgated certain proposed interim regulations delegating to the various regulatory bodies in each of the states, called the state jurisdictional agencies, certain duties and responsibilities with tespect to receiving reports and filings and determining gas well classifications for pricing purposes required by the NGPA. FERC has identified the Arkansas Oil and Gas Commission as the jurisdictional agency in Arkansas to further implement the NGPA. The question is whether the Arkansas Oil and Gas Commission may lawfully accept and assume the functions delegated to it. The present Arkansas Oil and Gas Commission was established by Act 105 of 1939, now codified as Ark. Stat. Ann. 153-101 et se&. Section 1 of this Act (Ark.*Stat. Ann. 153-101) declares the broad policy objec- tives of the law: In recognition of past, present, and imminent evils occurring in the production and use of oil and gas, as a result of waste in

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