(a) All such corporations shall furnish equal facilities to all persons and shall not discriminate in services, in charges, or otherwise, either for or against any person, and shall be charged with all duties, responsibilities, and liabilities imposed upon public utility corporations by the laws of this state, and be subject to the Tennessee public utility commission.

(b)

(1) As a pilot project through the end of the year 2003, and notwithstanding any state or local law to the contrary, any intrastate natural gas pipeline corporation, subject to regulation by the Tennessee public utility commission as a public utility, may transport natural gas to end users in Tennessee only if such natural gas is produced from Tennessee wells located in any county contained within the second, fourth, fifth, sixth, seventh or twelfth senatorial districts, and/or in the smallest county by population located in the fifteenth senatorial district, as these districts exist on June 17, 1999, and only if the end users of such natural gas are located in these counties; provided that no such pilot project shall be permitted within the chartered service area of a utility district created by private act. Such intrastate natural gas pipeline corporations shall not transport intrastate natural gas to end users that are served by a municipal utility or by a utility district or within a utility district's chartered service area on June 17, 1999, unless:

(A) The end user has been served by an interstate pipeline; or

(B) At the option of the utility district or municipal utility, such intrastate natural gas pipeline or end user assumes any contractual obligation of the utility district or municipal utility to an interstate natural gas pipeline incurred on behalf of such end user which remains after termination of service by such end user prior to the end of the term of the contract, tariff or other arrangement pursuant to which the end user receives service.

(2) At the option of the utility district or municipal utility, such intrastate natural gas pipeline may serve end users not now being served by a municipal utility or by a utility district or within a utility district's chartered service area. This subdivision (b)(2) shall not prohibit service to end users specifically authorized to be served in accordance with subdivision (b)(1)(A).

(3) Any contractual arrangements made by an intrastate natural gas pipeline corporation for transportation of natural gas pursuant to subdivision (b)(1) shall remain in effect according to their terms if such agreements are entered into, or permits are granted, during the pilot project, even though the term of such transportation agreement shall be for a longer term than the pilot project and without regard to whether the pilot project is extended or is not extended.