A bill to amend the Natural Gas Policy Act of 1978 to prohibit take-or-pay clauses or similar minimum purchase requirements under natural gas supply contract, prohibit indefinite price escalator clauses, and to allow the Federal Energy Regulatory Commission to prohibit pass-through of natural gas prices, or take other corrective action, if the prices paid by natural-gas companies are excessive due to waste or imprudence.

Summary

Amends the National Gas Policy Act of 1978 to declare unenforceable and against public policy, in any natural gas contract: (1) "indefinite price escalator clauses"; and (2) "take-or-pay clauses." Makes an exemption to such rule on "take-or-pay clauses" if necessary to recover certain costs. Defines a "take-or-pay clause" to mean any contract provision requiring payment for a minimum amount of natural gas if the purchaser fails to take delivery. Prohibits a pipeline from passing on its costs of natural gas (cost passthroughs) if the costs were incurred due to waste or imprudence.

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1 official file

• Introduced in House

  summary · EN · 25 February 1983

  Open at official source

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