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Commodities transported by pipelines are governed by federal or state agencies depending on the transportation routes. Those commodities traveling from state to state, via a pipeline, are known as "interstate" movements and are currently under the authority of the Interstate Commerce Act (1887). The Hepburn Act (1906) expanded the authority under ICA to include interstate oil pipelines. Under the provisions of the Hepburn Act, all interstate oil pipelines are deemed common
carriers and are required to file tariffs of rates and charges with the Interstate Commerce Commission (ICC). The ICC evolved into the agency we now recognize as the Federal Energy Regulatory Commission (FERC). Through the prescribed tariff filings, the FERC reviews for undue discrimination or preferences and the reasonability of rates.
While the FERC regulates interstate transportation, individual state agencies, such as the Oklahoma Corporation Commission or the Railroad Commission of Texas, have authority over movements wholly within their state. Each state has its own set of rules for these "intrastate" movements, and they too, require a tariff. While state regulations are usually not as detailed, the responsible agency will often look to federal precedence when questions arise. |