Natural Gas Consumer Relief Act

Summary

Natural Gas Consumer Relief Act - Amends the Natural Gas Policy Act of 1978 to declare that contractual take-or-pay clauses which apply to natural gas sales to interstate or intrastate pipelines are against public policy and unenforceable. (A "take-or-pay clause" is any contract provision which requires payment for the minimum quantity of natural gas contracted for if the purchaser fails to take delivery.) Authorizes purchasers under existing contracts which contain such clauses to: (1) exercise make-up rights under such clauses; or (2) receive a refund for amounts paid if make-up rights have not been exercised. States that any contract for the sale of natural gas to any pipeline shall be deemed to include purchase adjustment clauses which: (1) allow a maximum fifty percent reduction by the purchaser of the contracted delivery volume; (2) require a purchaser to reduce previously contracted deliveries of higher-priced natural gas before such purchaser may reduce delivery volumes under the purchase adjustment clauses; and (3) require a purchaser to reduce previously contracted deliveries of the same or higher-priced natural gas from affiliated producers before such purchaser may reduce delivery volumes under the purchase adjustment clauses. Prohibits a purchaser from accepting, during the period of reduction, natural gas deliveries at prices equal to or higher than those of whose delivery such purchaser had previously reduced under the gas adjustment clauses. States that contracts establishing two or more natural gas categories for pricing purposes shall be treated as separate contracts for each such category. Requires the Federal Energy Regulatory Commission (the Commission) to take into account the use (or non-use) of delivery adjustment clauses by a pipeline in any general rate proceeding involving such pipeline. Prohibits a natural-gas company from effecting any rate increases based upon increases in the cost of acquiring natural gas until the Commission has determined (after an investigation and opportunity for a hearing) that such acquisition is reasonable and in the public interest. Authorizes appropriations for FY 1986 and 1987: (1) to implement the Low-Income Energy Assistance Act of 1981; and (2) for use by the States for low-cost residential weatherization or energy-related home repair for low-income households. Amends the Natural Gas Act to declare that the importation of natural gas into the United States shall not be in the public interest unless the importation prices reflect the current natural gas market and the Commission determines that such importation is justified considering the availability and cost of natural gas produced in the United States.

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1 official file

• Introduced in House

  summary · EN · 3 January 1985

  Open at official source

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