NATURAL GAS POLICY ACT OF 1978

AN ACT For the relief of Joe Cortina of Tampa, Florida.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

[Private relief matter relating to Joe Cortina not shown.]

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.-This Act may be cited as the "Natural Gas Policy Act of 1978".

(b) TABLE OF CONTENTS.

TABLE OF CONTENTS

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I-WELLHEAD PRICING

Subtitle A-Wellhead Price Controls

Sec. 101. Inflation adjustment; other general price ceiling rules.

Sec. 102. Ceiling price for new natural gas and certain natural gas produced from the Outer Continental Shelf.

Sec. 103. Ceiling price for new, onshore production wells.

Sec. 104. Ceiling price for sales of natural gas dedicated to interstate commerce. Sec. 105. Ceiling price for sales under existing intrastate contracts.

Sec. 106. Ceiling price for sales under rollover contracts.

Sec. 107. Ceiling price for high-cost natural gas.

Sec. 108. Ceiling price for stripper well natural gas.

Sec. 109. Ceiling price for other categories of natural gas.

Sec. 110. Treatment of State severance taxes and certain production-related costs.

Subtitle B-Decontrol of Certain Natural Gas Prices

Sec. 121. Elimination of price controls for certain natural gas sales.

Sec. 122. Standby price control authority.

Sec. 123. Report to the Congress.

TITLE II—INCREMENTAL PRICING

Sec. 201. Industrial boiler fuel use.

Sec. 202. Amendment expanding application for other industrial uses.
Sec. 203. Acquisition costs subject to passthrough.

Sec. 204. Method of passthrough.

Sec. 205. Local distribution company passthrough requirements.

Sec. 206. Exemptions.

Sec. 207. Treatment of certain imports.

Sec. 208. Alaska natural gas.

TITLE III-ADDITIONAL AUTHORITIES AND REQUIREMENTS

Subtitle A-Emergency Authorities

Sec. 301. Declaration of Emergency.
Sec. 302. Emergency purchase authority.
Sec. 303. Emergency allocation authority.
Sec. 304. Miscellaneous provisions.

Subtitle B-Other Authorities and Requirements

Sec. 311. Authorization of certain sales and transportation.

Sec. 312. Assignment of contractual rights to receive surplus natural gas.

Sec. 313. Effect of certain natural gas prices on indefinite price escalator clauses. Sec. 314. Clauses prohibiting certain sales, transportation, and commingling.

Sec. 315. Contract duration; right of first refusal; filing of contracts and agree

ments.

TITLE IV-NATURAL GAS CURTAILMENT POLICIES

Sec. 401. Natural gas for essential agricultural uses.

Sec. 402. Natural gas for essential industrial process and feedstock uses.

Sec. 403. Establishment and implementation of agricultural and industrial priorities.

Sec. 404. Limitation on revoking or amending certain pre-1969 certificates of public convenience and necessity.

TITLE VI-ADMINISTRATION, ENFORCEMENT, AND REVIEW

Sec. 501. General rulemaking authority.

Sec. 502. Administrative procedure.

Sec. 503. Determinations for qualifying under certain categories of natural gas.
Sec. 504. Enforcement.

Sec. 505. Intervention.

Sec. 506. Judicial review.

Sec. 507. Congressional review.

Sec. 508. Technical amendment.

TITLE VI-COORDINATION WITH THE NATURAL GAS ACT; EFFECT ON STATE LAWS

Sec. 601. Coordination with the Natural Gas Act.

Sec. 602. Effect on State laws.

[15 U.S.C. 3301 note]

SEC. 2. DEFINITIONS.

For purposes of this Act

(1) NATURAL GAS.-The term "natural gas" means either natural gas unmixed, or any mixture of natural and artificial gas. (2) WELL.-The term "well" means any well for the discovery or production of natural gas, crude oil, or both.

(3) NEW WELL.-The term "new well" means any well

(A) the surface drilling of which began on or after February 19, 1977; or

(B) the depth of which was increased, by means of drilling on or after February 19, 1977, to a completion location which is located at least 1,000 feet below the depth of the deepest completion location of such well attained before February 19, 1977.

(4) Old well.-The term "old well" means any well other than a new well.

(5) MARKER WELL.

(A) GENERAL RULE.-The term "marker well" means any well from which natural gas was produced in commercial quantities at any time after January 1, 1970, and before April 20, 1977

(B) NEW WELLS.-The term "marker well" does not include any new well under paragraph (3)(A) but includes any new well under paragraph (3)(B) if such well qualifies as a marker well under subparagraph (A) of this paragraph.