Natural Gas Consumer Access Amendments of 1983

Summary

Natural Gas Consumer Access Amendments of 1983 - Amends provisions of the Natural Gas Policy Act of 1978 relating to the transportation of natural gas by pipeline. Requires a pipeline, without discrimination, to transport natural gas on a reasonable request if: (1) the owner of the gas submits to the pipeline a formal application for transportation which shall include documentation for the sale of a minimum of a total of 250 Mcf per day of natural gas for a period of at least six months; (2) such owner agrees to compensate the pipeline in accordance with the tariff rates established by the Federal Energy Regulatory Commission (FERC); and (3) the pipeline has sufficient available throughput capacity. Directs FERC to establish just and reasonable maximum rates and charges for such transportation. Requires FERC's responsibilities over any intrastate pipeline to be delegated to the appropriate State commission. Directs FERC to prescribe regulations governing contractual relationships and obligations relating to transportation under this Act. Authorizes FERC to require the interconnection of two or more pipelines or the extension of a pipeline for purposes of increasing available throughput capacity. Defines "available throughput capacity" to mean that portion of pipeline capacity which during the term of the transport contract would otherwise be unused except during periods of peak usage. Defines the term "free access gas" to mean natural gas produced from any well in the United States: (1) which is not subject to a sales contract as of a certain time; (2) which is released by the pipeline by the exercise of a volume adjustment option; or (3) which is subjected to any termination of contractual obligations. Authorizes free access gas to be sold to any purchaser capable of taking delivery and the seller shall be considered released from all duties and obligations with respect to the service obligations of the Natural Gas Policy Act of 1978. Provides that in the case of any existing contract provision which has a minimum purchase requirement if a pipeline which is a party to such contract transmits to the producer a written notice requesting that such contract be voided, such contract shall be unenforceable with respect to any natural gas sale, transportation, or storage required under such contract after the expiration of the later of: (1) the 60 day period beginning on the date notice is received; or (2) the date specified in the notice for contract termination. Defines "minimum purchase requirement" to mean any contract or tariff requirement of payment for the minimum quantity of natural gas contracted for if the purchaser fails to take delivery. Directs FERC and the Department of Justice to undertake a cooperative study of and to report to Congress on the competitive effects of vertical integration in the production, purchase, transport, storage, and sale of natural gas, and the effects of vertical integration on the price, availability, and deliverability of natural gas to local distribution companies and ultimate consumers.

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1 official file

• Introduced in Senate

  summary · EN · 20 April 1983

  Open at official source

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