Natural Gas Market Reform Act

Summary

Natural Gas Market Reform Act - Provides that where there is a contract for the first sale of high-cost natural gas that includes a take-or-pay clause or an indefinite price escalator clause, such contract shall be deemed to include contract provisions that provide: (1) if the purchaser determines that any or all of the natural gas subject to the contract cannot be marketed at the price otherwise specified by the contract, the purchaser may reduce the price to be paid under the contract, reduce the volume of gas to be subject to any take-or-pay clause of the contract, or both, to the extent necessary to prevent the natural gas from being unmarketable; and (2) within 15 days after the purchaser notifies the seller of a new price for gas or of a new volume of natural gas to be subject to any take-or-pay clause, the seller may terminate the contract without penalty or may terminate the contract with respect to the take-or-pay clause. Provides that any new price or any new volume of natural gas with respect to a take-or-pay clause will take effect 15 days after the purchaser notifies the seller of such new price or such new volume. Provides that an interstate or intrastate pipeline that was a party to a contract for natural gas that was terminated under these provisions shall have an obligation to transport the natural gas that was subject to the terminated contract. Authorizes relief from the transportation obligation of the pipeline where a hearing is conducted and the transportation of the gas would require construction of additional facilities or would impair the ability of the pipeline to serve its existing customers adequately. Establishes the rate for any transportation of natural gas at five cents per million British thermal units plus the cost of such transportation for gas obligated to be transported by these provisions.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 13 April 1983

   Introduced

   Read twice and referred to the Committee on Energy and Natural Resources.

   Source: IntroReferral

2. 13 April 1983

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 26 July 1983

   Reported

   Committee on Energy and Natural Resources. Provisions of measure incorporated into measure S. 1715 ordered to be reported.

   Source: Committee

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in Senate

  summary · EN · 13 April 1983

  Open at official source

Sponsors

• Sen. Hart, Gary W. [D-CO] · D · Sponsor
• · sseg00 · Standing

Related records

• related to ← Natural Gas Policy Act Amendments of 1983