Natural Gas Production and Conservation Act

Summary

Natural Gas Production and Conservation Act - Defines the terms used in this Act. States that new natural gas may be sold or transferred in commerce by a producer only if its total price at the time deliveries are first commenced does not exceed the base price, applicable adjustment, or additional amount, if any, authorized by this Act. Directs the Federal Power Commission to establish an initial national base price for natural gas within 180 days of enactment, and to make such price retroactive to January 1, 1975. States that the initial national base price shall not be less than $.40 nor more than $.75 per thousand cubic feet of natural gas. Provides for an annual adjustment of the base price to account for any inflation. States that the Commission may authorize charges for natural gas in excess of the base price in any high-cost production areas designated by the Commission according to specified criteria set forth in this Act. Permits the pass through, on a dollar-for-dollar basis, of the cost of all new natural gas unless the costs exceed the applicable price ceiling. Limits the applicability of the provisions of this Act to new natural gas. Allows small producers to sell new natural gas at a price which exceeds the applicable authorized price by up to 50 percent. Requires that for sales of old natural gas, priority be given to local distribution companies to meet requirements of each such company's residential and small users. Makes it unlawful for local distribution companies to charge residential and small users rates which do not reflect the lesser cost of natural gas for such users. Directs the Commission to grant or deny approval for the construction of new gas pipelines within 120 days. Stipulates that agreements pertaining to oil or gas development on Federal lands shall require, as a condition to such agreement, that the person granted the right of development design and implement immediately an exploratory and development program designed to obtain maximum production from such lands as soon as practicable, upon approval by the Secretary of the Interior. Requires the Secretary of the Interior to report annually to the Commission and to Congress on the status of all Federal lands leased for oil and gas development. Directs producers and small producers to keep the Commission currently informed on a reservoir to resovoir basis of all natural gas reserves which it has discovered. Prohibits the use of natural gas and propane for boiler fuel by users other than residential or small users unless, upon petition by a user, the Commission determines that (1) such user has a plan to convert as soon as possible to alternative fuels produced in any State; or (2) it is not feasible to utilize such alternative fuels at the time of such Commission determination. Directs the Commission to promulgate by rule a national plan to prohibit as soon as practicable boiler fuel use of natural gas and propane contracted for prior to January 1, 1975, by users other than residential or small users. Requires the Commission to take necessary steps to assure the availability in interstate commerce of sufficient quantities of natural gas for use as a raw material feedstock or process fuel in the production of fertilizer and essential agricultural chemicals in existing and new plants. Authorizes the Commission, upon a finding that it is in the public interest, to direct any natural-gas company to establish a physical interconnection between any specified facility of such company and any specified facility of any other such company, or any producer, or any small producer. States that upon a finding that there is a natural gas supply emergency in a specific area, the Commission may, by order, direct any natural-gas company or companies which is not itself experiencing such an emergency to make specified deliveries of natural gas, directly or indirectly, to the natural-gas company which is experiencing the emergency. Requires that the company delivering gas for such an emergency be compensated at a rate equal to the price of the highest-cost natural gas sold by such company plus any additional price authorized by the Commission.

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Documents

2 official files

• Reported to Senate with amendment(s)

  summary · EN · 12 June 1975

  Open at official source

• Introduced in Senate

  summary · EN · 17 February 1975

  Open at official source

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