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TABLE OF CONTENTS—Continued 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 V-ADMINISTRATION, ENFORCEMENT, AND REVIEW Sec. 601. General rulemaking authority. Sec. 502. Administrative procedure. Sec. 603. Determinations for qualifying under certain categories of natural gas. Sec. 304. Enforcement. Sec. 500. Intervention. Sec. 506. Judicial review. Sec. 507. Congressional review. Soc. 608. Technical amendment.

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

STATE LAWS

Sec. 601. Coordination with the Natural Gas Act.
Sec. 602. Efect on State laws.
SEC. 2. DEFINITIONS.
For purposes of this Act,

(1) NATURAL GA8.—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 & 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. (6) RESERVOIR. -The term "reservoir” means any producible natural accumulation of natural gas, crude oil, or both, confined

(A) by impermeable rock or water barriers and characterized by a single natural pressure system; or

(B) by lithologic or structural barriers which prevent pressure communication. (7) COMPLETION LOCATION. (A) GENERAL RULE. —

::—The term "completion location" means any subsurface location from which natural gas is being or has been produced in commercial quantities.

(B) MARKER WELL—The term "completion location”, when used with reference to any marker well, means any subsurface location from which natural gas was produced from such well in commercial quantities after January 1,

1970, and before April 20, 1977. (8) PRORATION UNIT.-The term "proration unit” means

(A) any portion of a reservoir, as designated by the State or Federal agency having regulatory jurisdiction with respect to production from such reservoir, which will be effectively and efficiently drained by a single well;

(B) any drilling unit, production unit, or comparable arrangement, designated or recognized by the State or Federal agency having jurisdiction with respect to production from the reservoir, to describe that portion of such reservoir which will be effectively and efficiently drained by a single well; or

(C) if such portion of a reservoir, unit, or comparable arrangement is not specifically provided for by State law or by any action of any State or Federal agency having regulatory jurisdiction with respect to production from such reservoir, any voluntary unit agreement or other comparable arrangement applied, under local custom or practice within the locale in which such reservoir is situated, for the purpose of describing the portion of a reservoir which may be effec

tively and efficiently drained by a single well. (9) NEW LEASE.—The term “new lease”, when used with respect to the Outer Continental Shelf, means a lease, entered into on or after April 20, 1977, of submerged acreage.

(10) OLD LEASE.—The term "old lease", when used with respect to the Outer Continental Shelf, means any lease other than a new lease.

(11) NEW CONTRACT.—The term "new contract” means any contract, entered into on or after the date of the enactment of this Act, for the first sale of natural gas which was not previously subject to an existing contract.

(12) ROLLOVER CONTRACT.—The term “rollover contract” means any contract, entered into on or after the date of the enactment of this Act, for the first sale of natural gas that was previously subject to an existing contract which expired at the end of a fixed term (not including any extension thereof taking effect on or after such date of enactment) specified by the provisions of such existing contract, as such contract was in effect on the date of the enactment of this Act, whether or not there is an identity of parties or terms with those of such existing contract.

(13) ExistinG CONTRACT.-The term “existing contract” means any contract for the first sale of natural gas in effect on the day before the date of the enactment of this Act.

(14) SUCCESSOR TO AN EXISTING CONTRACT.—The term "successor to an existing contract” means any contract, other than a rollover contract, entered into on or after the date of the enactment of this Act, for the first sale of natural gas which was previously subject to an existing contract, whether or not there is an identity of parties or terms with those of such existing contract.

(15) INTERSTATE PIPELINE.—The term “interstate pipeline” means any person engaged in natural gas transportation subject to the jurisdiction of the Commission under the Natural Gas Act.

(16) INTRASTATE PIPELINE.—The term “intrastate pipeline" means any person engaged in natural gas transportation (not including gathering) which is not subject to the jurisdiction of

the Commission under the Natural Gas Act (other than any such pipeline which is not subject to the jurisdiction of the Commission solely by reason of section 1(c) of the Natural Gas Act).

(17) LOCAL DISTRIBUTION COMPANY.–The term “local distribution company" means any person, other than any interstate pipeline or any intrastate pipeline, engaged in the transportation, or local distribution, of natural gas and the sale of natural gas for ultimate consumption. (18) COMMITTED OR DEDICATED TO INTERSTATE COMMERCE.

(A) GENERAL RULE.—The term "committed or dedicated to interstate commerce", when used with respect to natural gas, means

(i) natural gas which is from the Outer Continental Shelf; and

(ii) natural gas which, if sold, would be required to be sold in interstate commerce (within the meaning of the Natural Gas Act) under the terms of any contract, any certificate under the Natural Gas Ac or any provision

of such Act. (B) Exclusion.--Such term does not apply with respect to

(i) natural gas sold in interstate commerce (within the meaning of the Natural Gas Act)

(I) under section 6 of the Emergency Natural Gas Act of 1977;

(II) under any limited term certificate, granted pursuant to section 7 of the Natural Gas Act, which contains a pregrant of abandonment of service for such natural gas;

(III) under any emergency regulation under the second proviso of section 7(c) of the Natural Gas Act; or

(IV) to the user by the producer and transported under any certificate, granted pursuant to section 7(c) of the Natural Gas Act, if such certificate was specifically granted for the transportation of that

natural gas for such user; (ii) natural gas for which abandonment of service was granted before the date of enactment of this Act under section 7 of the Natural Gas Act; and

(iii) natural gas which, but for this clause, would be committed or dedicated to interstate commerce under subparagraph (A)(ii) by reason of the action of any person (including any successor in interest thereof, other than by means of any reversion of a leasehold interest), if on May 31, 1978—

(I) neither that person, nor any affiliate thereof, had any right to explore for, develop, produce, or sell such natural

gas;

and (II) such natural gas was not being sold in inter. state commerce (within the meaning of the Natural Gas Act) for resale (other than any sale described

in clause (i) (I), (II), or (III)). (19) CERTIFICATED

GAS.—The term "certificated natural gas” means natural gas transported by any interstate pipeline in a facility for which there is in effect a certificate issued under section 7(c) of the Natural Gas Act. Such term does not include natural gas sold to the user by the producer and transported pursuant to a certificate which is specifically issued under

NATURAL

section 7(c) of the Natural Gas Act for the transportation of that natural gas, for such user unless such natural gas is used for the generation of electricity.

(20) SALE. - The term "sale” means any sale, exchange, or other transfer for value. (21) FIRST SALE.—

(A) GENERAL RULE.— The term “first sale” means any sale of any volume of natural gas.

to any interstate pipeline or intrastate pipeline; (ii) to any local distribution company; (iii) to any person for use by such person; (iv) which precedes any sale described in clauses (i), (ii), or (iii); and

(v) which precedes or follows any sale described in clauses (i), (ii), (iii), or (iv) and is defined by the Commission as a first sale in order to prevent circumvention of any maximum lawful price established under this

Act. (B) CERTAIN BALES NOT INCLUDED.—Clauses (i), (ii), (iii), or (iv) of subparagraph (A) shall not include the sale of any volume of natural gas by any interstate pipeline, intrastate pipeline, or local distribution company, or any affiliate thereof, unless such sale is attributable to volumes of natural gas produced by such interstate pipeline, intrastate pipeline, or local distribution company, or any affiliate thereof. (22) DELIVER.—The term "deliver” when used with respect to any first sale of natural gas, means the physical delivery from the seller; except that in the case of the sale of proven reserves in place to any interstate pipeline, any intrastate pipeline, any local distribution company, or any user of such natural gas, such term means the transfer of title to such reserves.

(23) CERTIFICATE.—The term "certificate", when used with respect to the Natural Gas Act, means a certificate of public convenience and necessity issued under such Act.

(24) COMMISSION.—The term “Commission" means the Federal Energy Regulatory Commission. (25) FEDERAL AGENCY.

:-The term "Federal agency” has the same meaning as given such term in section 105 of title 5, United States Code.

(26) PERSON.—The term “person” includes the United States, any State, and any political subdivision, agency, or instrumentality of the foregoing.

(27) AFFILIATE.—The term "affiliate”, when used in relation to any person, means another person which controls, is controlled by, or is under common control with, such person.

(28) ELECTRIC UTILITY.—The term "electric utility” means any person to the extent such person is engaged in the business of the generation of electricity and sale, directly or indirectly, of electricity to the public.

(29) McF.—The term “Mcf”, when used with respect to natural gas, means 1,000 cubic feet of natural gas measured at a pressure of 14.73 pounds per square inch (absolute) and a temperature of 60 degrees Fahrenheit.

(30) Bru.-The term "Btu” means British thermal unit. (31) MONTH. The term "month” means a calendar month.

(32) MILE.—The term “mile” means a statute mile of 5,280 feet.

(33) UNITED STATES.—The term “United States” means the several States and includes the Outer Continental Shelf.

(34) STATE.-The term “State" means each of the several States and the District of Columbia.

(35) OUTER CONTINENTAL SHELF.—The term “Outer Continental Shelf” has the same meaning as such term has under section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 (a)).

(36) PRUDHOE BAY UNIT OF ALASKA.—The term “Prudhoe Bay Unit of Alaska” means the geographic area subject to the voluntary unit agreement approved by the Commissioner of the Department of Natural Resources of the State of Alaska on June 2, 1977, and referred to as the affected area” in Conservation Order No. 145 of the Alaska Oil and Gas Conservation Com. mittee, Division of Oil and Gas Conservation, Department of Natural Resources of the State of Alaska, as such order was in effect on June 1, 1977, and determined without regard to any adjustments in the description of the affected area permitted to be made under such order.

(37) ANTITRUST LAWS.—The term “Federal antitrust laws" means the Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 12, 13, 14–19, 20, 21, 22-27), the Federal Trade Commission Act (15 U.S.C. 41 et seq.), sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8-9), and the Act of June 19, 1936, chapter 592 (15 U.S.C. 13, 13a, 13b, and 21a).

TITLE I-WELLHEAD PRICING
Subtitle A-Wellhead Price Controls

SEC. 101. INFLATION ADJUSTMENT; OTHER GENERAL PRICE CEILING

RULES. (a) Annual INFLATION ADJUSTMENT FACTOR.—

(1) GENERAL RULE.—For purposes of this title, the annual inflation adjustment factor applicable for any month shall be the sum of

(A) a factor equal to one hundredth of the quarterly percent change in the GNP implicit price deflator; plus

(B) a correction factor of 1.002. (2) QUARTERLY PERCENT CHANGE IN THE GNP IMPLICIT PRICE DEFLATOR. -For purposes of paragraph (1)—

(A) IN GENERAL-The term "quarterly percent change in the GNP implicit price deflator”, when used with respect to any month, means the quarterly percent change in the GNP implicit price deflator, computed and published as an annual rate by the Department of Commerce, for the most recent calendar quarter for which such quarterly percent change has been so published at least 8 days before the beginning of such month.

(B) MONTHS BEFORE ENACTMENT.-For purposes of applying such term with respect to any month in any calendar quarter which ends before the date of the enactment of this Act and for which a quarterly percent change in the GNP implicit price deflator has been published by the Department

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