Public Law 95–621

the surface drilling of which began on or after February 19, 1977; or

the depth of which was increased, by means of drilling on or after February 19, 1977, to a completion location which is located at least 1,000 feet below the depth of the deepest completion location of such well attained before February 19, 1977.

General rule.—The term “marker well” means any well from which natural gas was produced in commercial quantities at any time after January 1, 1970, and before April 20, 1977.

New wells.—The term “marker well” does not include any new well under paragraph (3) (A) but includes any new well under paragraph (3) (B) if such well qualifies as a marker well under subparagraph (A) of this paragraph.

by impermeable rock or water barriers and characterized by a single natural pressure system; or

by lithologic or structural barriers which prevent pressure communication.

General rule.—

The term “completion location” means any subsurface location from which natural gas is being or has been produced in commercial quantities.

Marker well.—

The term “completion location”, when used with reference to any marker well, means any subsurface location from which natural gas was produced from such well in commercial quantities after January 1, 1970, and before April 20, 1977.

any portion of a reservoir, as designated by the State or Federal agency having regulatory jurisdiction with respect to production from such reservoir, which will be effectively ana efficiently drained by a single well;

any drilling unit, production unit, or comparable arrangement, designated or recognized by the State or Federal agency having jurisdiction with respect to production from the reservoir, to describe that portion of such reservoir which will be effectively and efficiently drained by a single well; or

if such portion of a reservoir, unit, or comparable arrangement is not specifically provided for by State law or by any action of any State or Federal agency having regulatory jurisdiction with respect to production from such reservoir, any voluntary unit agreement or other comparable arrangement applied, under local custom or practice within the locale in which such reservoir is situated, for the purpose of describing the portion of a reservoir which may be effectively and efficiently drained by a single, well.

General rule.—

The term “committed or dedicated to interstate commerce”, when used with respect to natural gas, means—

Exclusion.—

Such term does not apply with respect to—

General rule.—

The term “first sale” means any sale of any volume of natural gas—

Certain sales not included.—

Clauses (i), (ii), (iii), or (iv) of subparagraph (A) shall not include the sale of any volume of natural gas by any interstate pipeline, intrastate pipeline, or local distribution company, or any affiliate thereof, unless such sale is attributable to volumes of natural gas produced by such interstate pipeline, intrastate pipeline, or local distribution company, or any affiliate thereof.

described in section 203; and

incurred by any interstate pipeline.

Industrial boiler fuel facility.—

The term “industrial boiler fuel facility” means any industrial facility, as defined by the Commission, which uses natural gas as a boiler fuel and which is not exempt under section 206.

Boiler fuel use.—

The term “boiler fuel use” means the use of any fuel for the generation of steam or electricity.

any industrial boiler fuel facility (as defined in section 201 (c)(1)); and

any industrial facility which is within a category defined by the Commission in such amendment as subject thereunder to the requirements of such rule which is not exempt under section 206.

In general.—

Any amendment, the effectiveness of which is subject to this subsection, shall take effect beginning with the first month which begins more than 30 days after the first 30 calendar days of continuous session of Congress (determined in accordance

Post, p. 3406.

with section 507(b) after a copy of such amendment has been submitted to each House of the Congress or on such later date, not more than 90 days thereafter, as may be provided in such amendment unless, during such 30 day period of continuous session of Congress, either House of the Congress adopts a resolution of disapproval described in section 507(c)(3) with respect to such amendment.

Authority in the event of congressional disapproval.—

New natural gas.—

In the case of new natural gas (as denned in section 102(c)), any portion of the first sale acquisition cost of such natural gas which exceeds the incremental pricing threshold applicable for the month in which the delivery of such natural gas occurs.

Natural gas under intrastate rollover contract.—

In the case of natural gas, delivered under a rollover contract, which was not committed or dedicated to interstate commerce on the day before the date of the enactment of this Act, any portion of the first sale acquisition cost of such natural gas which exceeds the incremental pricing threshold applicable for the month in which such delivery occurs.

New, onshore production well gab.—

In the case of natural gas produced from any new, onshore production well (as defined m section 103(c)), any portion of the first sale acquisition cost of such natural gas which exceeds the incremental pricing threshold applicable for the month in which the delivery of such natural gas occurs.

LNG imports.—

Subject to section 207, in the case of liquefied natural gas imported into the United States, any portion of the first sale acquisition cost of such natural gas (whether or not liquefied when acquired) which exceeds the incremental pricing threshold applicable for the month in which such liquefied natural gas enters the. United States.

Natural gas (other than lng) imports.—

Subject to section 207, in the case of natural gas (other than liquefied natural gas) imported into the United States, any portion of the first sale acquisition cost of such imported natural gas which exceeds the maximum lawful price, per million Btu’s, computed under section 102 (relating to new natural gas) for the month in which such natural gas enters the United States, without regard to section 110.

Stripper well natural gas.—

In the case of stripper well natural gas (as defined in section 108(b)), any portion of the first sale acquisition cost of such natural gas which exceeds the maximum lawful price, per million Btu’s, computed under section 102 (relating to new natural gas) for the month in which the delivery of such natural gas occurs, without regard to section 110.

High-cost natural gas.—

In the case of high-cost natural gas (as defined in section 107(c)), any portion of the first sale acquisition cost of such natural gas which exceeds 130 percent of the amount the Commission determines represents—

Alaska natural gas transportation system.—

In the case of natural gas produced from the Prudhoe Bay Unit of Alaska and transported through the natural gas transportation system approved under the Alaska Natural Gas Transportation Act of

15 USC 719 note.

1976—

Increased state severance taxes.—

Purchases under section 311.—

In the case of any sale of natural gas authorized under section 311, any portion of any amount paid, per million Btu’s, in the acquisition of such natural gas in any such sale which exceeds the incremental pricing threshold applicable for the month in which such acquisition occurs.

Surcharges paid to other pipelines.—

The amount of any surcharge (described in section 204(c) (3)) paid by any interstate pipeline for natural gas acquired by such pipeline from another interstate pipeline.

General rule.—

For purposes of this section, the first sale acquisition cost of natural gas is—

Any amount of State severance taxes paid at any first sale shall not be included under subparagraph (A) or (B).

Interstate pipeline production.—

For purposes of this section, in the case of any natural gas produced by any interstate pipeline or any affiliate of such pipeline, the first sale acquisition cost of such natural gas shall be determined in accordance with rules prescribed by the Commission.

$1.48 per million Btu’s, in the case of March 1978; and

in the case of any month thereafter, the amount, per million Btu’s, determined under this subsection for the preceding month multiplied by the monthly equivalent of the annual inflation adjustment factor (as defined in section 101(a)) applicable for such month.

In general.—

The rule required under section 201 (including any amendment under section 202 to such rule) shall be designed to provide that any amounts in any interstate pipeline’s account will be passed through, in accordance with a method prescribed under paragraph (2), by means of a surcharge determined in accordance with a method prescribed under paragraph

Surcharge passthrough.—

The rule required under section 201 (including any amendment under section 202) shall provide—

Surcharge.—

Local distribution company direct purchases.—

In any case in which a local distribution company directly incurs any first sale acquisition cost subject to the passthrough requirements of this title under section 203 or otherwise directly incur any other cost subject to such requirements under sections 203(ai (8) (B), (9), or (10), such local distribution company shall, with respect to the natural gas involved, be treated for purposes of this title as if it were an interstate pipeline.

Pipelines and local distribution companies with more than one source of natural gas.—

The rule under section 201 (including any amendment under section 202 to such rule) shall prescribe one or more methods for determining, for purposes of paragraph (2) (B) and paragraph (3) (A), the volume of natural gas delivered indirectly by any interstate pipeline to any incrementally priced industrial facility through any other interstate pipeline or local distribution company for purposes of applying subsection (d)(2).

In general.—

Amounts passed through by any interstate pipeline by means of any surcharge under this section shall be deducted from such pipeline’s account.

Normal allocation to occur where btu equivalency is reached for all facilities served by a pipeline.—

In any case in which the rates and charges to incrementally priced industrial facilities for natural gas delivered, directly or indirectly, by any interstate pipeline for industrial use to incrementally priced industrial facilities subject to the rule required under section 201 (including any amendment under section 202 to such rule), are not less than the appropriate alternative fuel cost, such rule shall prescribe one or more methods by which amounts in excess of that reasonably necessary to maintain such rates and charges applicable to such industrial facilities at the appropriate alternative fuel cost may be deducted from such pipeline’s account and may be allocated to the rates and charges of such interstate pipeline in any manner which would be permitted in the absence of this title.

In general.—

Except as provided in paragraph (2), the appropriate alternative fuel cost for any region (as designated by the Commission) shall be the price, per million Btu’s, for Number 2 fuel oil determined by the Commission to be paid in such region by industrial users of such fuel.

Reduction of appropriate alternative fuel cost allowed.—

The Commission may, by rule or order, reduce the appropriate alternative fuel cost—

to an amount not lower than the price, per million Btu’s. for Number 6 fuel oil determined by the Commission to be paid in such region by industrial users of such fuel, if and to the extent the Commission determines, after an opportunity for written and oral presentation of views, data, and arguments, that such reduction is necessary to prevent increases in the rates and charges to residential, small commercial, and other high-priority users of natural gas which would result from a reallocation of costs caused by the conversion of such industrial facility or facilities from natural gas to other fuels, which conversion is likely to occur if the level of the appropriate alternative fuel cost were not so reduced.

Interim exemption.—

During the period preceding the

15 USC 3346.

effective date of any permanent exemption under paragraph (2), the rule required under section 201 shall not apply with respect to any boiler fuel use of natural gas by any industrial boiler fuel facility in existence on the date of the enactment of this Act if such use of natural gas by such facility does not exceed an average of 300 Mcf per day during any month of a base period determined appropriate by the Commission.

Permanent exemption.—

Interim exemption.—

During the period preceding the effective date of any permanent exemption under paragraph (2), the rule prescribed under section 201 shall not apply to any facility to the extent of any agricultural use of natural gas.

Exemption by rule.—

Not later than 18 months after the date of the enactment of this Act, the Commission shall prescribe and make effective a rule providing for the exemption from the rule required under section 201 (including any amendment under section 202 to such rule) any facility with respect to any agricultural use of natural gas for which the Commission determines that an alternative fuel or feedstock is not—

Agricultural use defined.—

For purposes of this subsection, the term “agricultural use”, when used with respect to natural gas, means the use of natural gas to the extent such use is—

any school, hospital, or other similar institution;

the generation of electricity by any electric utility; or

to the extent provided by the Commission by rule, any qualifying cogenerator (as defined in section 3(18) (B) of the

16 USC 796.

Ante, p. 3134.

Federal Power Act, as amended by the Public Utility Regulatory Policies Act of 1978).

In general.—

The Commission may, by rule or order, provide for the exemption, in whole or in part, of any other incrementally priced industrial facility or category thereof from the rule prescribed under section 201 (including any amendment under section 202 to such rule).

Congressional review.—

Any rule which provides for any exemption under this subsection may take effect after the expiration of the first 30 calendar days of continuous session of Congress

Post, p. 3406.

(determined in accordance with section 507(b)) after a copy of such rule has been submitted to each House of the Congress, unless, during such 30 day period of continuous session of Congress, either House of the Congress adopts a resolution of disapproval described in section 507(c) (3), with respect to such rule.

the maximum delivery obligations, for the month in which such delivery of such natural gas occurs, which is specified in contracts entered into on or before May 1, 1978, and in effect when such delivery occurs; and

the volume of natural gas imported into the United States by the interstate pipeline involved during any corresponding period (determined appropriate by the Commission) of calendar year 1977.

LNG imports.—

Subsection (a) (2) and (3) shall not apply with respect to any liquefied natural gas imports if, in connection with the granting of any authority under the Natural Gas Act

15 USC 717w.

to import such liquefied natural gas, the Secretary of the Department of Energy or the Commission, in accordance with the assignment of functions under the Department of Energy Organization Act, determines that the provisions of section 203(a)(4)

42 USC 7101 note.

shall apply with respect to such liquefied natural gas imports.

Natural gas imports (other than lng).—

The provisions of section 203(a) (5) shall apply to the passthrough of the first sale acquisition costs of volumes of natural gas (other than liquefied natural gas) imported into the United States which exceed the volume of natural gas imported into the United States by the interstate pipeline involved during any corresponding period (determined appropriate by the Commission) of calendar year 1977 if, in connection with the granting of any authority under the Natural Gas Act to import such natural gas, the Secretary

15 USC 717w.

of the Department of Energy or the Commission, in accordance with the assignment of functions under the Department of Energy Organization Act, determines that the provisions of

42 USC 7101 note.

section 203(a)(5) shall apply with respect to such natural gas imports.

Essential agricultural use.—

The term “essential agricultural use”, when used with respect to natural gas, means any use of natural gas—

which the Secretary of Agriculture determines is necessary for full food and fiber production.

High-priority user.—

The term “high-priority user” means any person who—

does not reduce the quantity of natural gas delivered for such use below the use requirement specified in subsection (c);

is necessary in order to meet the requirements of high-priority users; or

is necessary in order to meet the requirements for essential agricultural uses of natural gas for which curtailment priority is established under section 401.

Essential industrial process or feedstock use.—

The term “essential industrial process or feedstock use” means any use of natural gas in an industrial process or as a feedstock which the Secretary determines is essential.

High-priority user.—

The term “high-priority user” has the same meaning as given such term in section 401 (f) (2).

Determination.—

If any State or Federal agency makes any final determination which it is authorized to make under subsection (c) for purposes of—

such determination shall be applicable under this Act for such purposes unless such determination is reversed under the provisions of subsection (b) or unless such State or Federal agency has waived its authority under the provisions of subsection (c).

Notice to commission.—

Any Federal or State agency making a determination under paragraph (1) shall provide timely notice in writing of such determination to the Commission. Such notice shall include such substantiation and be in such a manner as the Commission may, by rule, require.

Authority to review and reverse.—

The Commission shall reverse any final State or Federal agency determination described in subsection (a) if—

Remand on basis of commission information.—

If—

it may remand the matter to such State or Federal agency for consideration of such information. If such agency, after consideration of the information transmitted to it by the Commission, affirms its previous determination, such determination, as so affirmed, shall be subject to review in accordance with this subsection (other than this paragraph).

Notice.—

The Commission shall provide notice of any proposed finding under this subsection to the State or Federal agency which made such determination and those parties identified in the notice to the Commission of such determination.

Judicial review of commission actions.—

General rule.—

A Federal or State agency having regulatory jurisdiction with respect to the production of natural gas is authorized to make determinations referred to in subsection (a).

Waiver.—

Procedures applicable.—

Determinations of a Federal or State agency referred to in subsection (a)(1) shall be made in accordance with the procedures generally applicable to such agency for the making of such determinations or comparable determinations under the provisions of Federal or State law, as the case may be, pursuant to which they exercise their regulatory jurisdiction. The. Commission may prescribe the form and content of filings with a Federal or State agency in connection with determinations made under this section.

Judicial review.—

Any such determination referred to in subsection (a)(1) made in accordance with procedures described in paragraph (3) shall not be subject to judicial review under any Federal or State law except as provided under subsection (b).

General rule.—

Any final determination referred to in subsection (a) (1) made by a Federal or State agency (or by the Commission under subsection (c)(2)) which relates to any natural gas and which is no longer subject to review by the Commission under this section or to judicial review shall thereafter be binding with respect to such natural gas. The preceding sentence shall not apply to any final determination—

Application of title 18.—

Any untrue statement or omission of material fact to a Federal or State agency upon which the Commission relied shall be deemed to be statement or entry under section 1001 of title 18, United States Code.

Collection of section 109 price.—

Alternate interim collection authority.—

Collection after initial determination.—

to sell natural gas at a first sale price in excess of any applicable maximum lawful price under this Act; or

to otherwise violate any provision of this Act or any rule or order under this Act.

In general.—

Except as provided in paragraphs (2) and (3), whenever it appears to the Commission that any person is engaged or about to engage in any act or practice which constitutes or will constitute a violation of any provision of this Act, or of any rule or order thereunder, the Commission may bring an action in the District Court of the United States for the District of Columbia or any other appropriate district court of the United States to enjoin such act or practice and to enforce compliance with this Act, or any rule or order thereunder.

Enforcement of emergency orders.—

Whenever it appears to the President that any person has engaged, is engaged, or is about to engage in acts or practices constituting a violation of any order under section 302 or any order or supplemental order issued under section 303, the President may bring a civil action in any appropriate district court of the United States to enjoin such acts or practices.

Enforcement of incremental pricing.—

The Secretary, the Commission, or, on the request of the Secretary of Energy or the Commission, the Attorney General, may institute a civil action for injunctive or other equitable relief as may be appropriate

Ante, p. 3378.

Ante, p. 3375.

to assure compliance with the provisions of section 205 requiring the passthrough of surcharges paid under section 204 by any local distribution company with respect to nautral gas delivered to incrementally priced industrial facilities served by such company. Such action may be instituted in any district court of the United States in the State in which such local distribution company conducts business or in the District Court of the United States for the District of Columbia.

Relief available.—

In any action under paragraph (1), (2), or (3), the court shall, upon a proper showing, issue a temporary restraining order or preliminary or permanent injunction without bond. In any such action, the court may also issue a mandatory injunction commanding any person to comply with any applicable provision of law, rule, or order, or ordering such other legal or equitable relief as the court determines appropriate, including refund or restitution.

Criminal referral.—

The Commission may transmit such evidence as may be available concerning any acts or practices constituting any possible violations of the Federal antitrust laws to the Attorney General who may institute appropriate criminal proceedings.

Civil penalties.—

Violations of act.—

Except in the case of violations covered under paragraph (3), any person who knowingly and willfully violates any provision of this Act shall be subject to—

Violation of rules or orders generally.—

Except in the case of violations covered under paragraph (3), any person who knowingly and willfully violates any rule or order under this Act (other than an order of the Commission assessing a civil penalty under subsection (b) (4) (E)), shall be subject to a fine of not more than $500 for each violation.

Violations of emergency orders.—

Any person who knowingly and willfully violates an order under section 302 or an order

Ante, p. 3382.

Ante, p. 3383.

or supplemental order under section 303 shall be fined not more than $50,000 for each violation.

Each day separate violation.—

For purposes of this subsection, each day of violation shall constitute a separate violation.

Definition of knowingly.—

For purposes of this subsection, the term “knowingly”, when used with respect to any act or omission by any person, means such person—

Intervention as matter of right.—

The Secretary of Energy may intervene as a matter of right in any proceeding relating to the prorationing of, or other limitations upon, natural gas production which is conducted by any State agency having regulatory jurisdiction over the production of natural gas.

Enforcement of right to intervene.—

The Secretary may bring an action in any appropriate court of the United States to enforce his right to intervene under paragraph (1).

Access to information.—

As an intervenor in a proceeding described in subsection (a), the Secretary shall have access to information available to other parties to the proceeding if such information is relevant to the issues to which his participation in such proceeding relates. Such information may be obtained through reasonable rules relating to discovery of information prescribed by the State agency.

Review in state courts.—

The Secretary may obtain review of any determination made in any proceeding described in subsection (a) (1) in the appropriate State court if the Secretary intervened or otherwise participated in the original proceeding or if State law otherwise permits such review.

Participation as amicus curiae.—

In addition to his authority to obtain review under paragraph (1), the Secretary may also participate an amicus curiae in any judicial review of any proceeding described in subsection (a)(1).

continuity of session is broken only by an adjournment of Congress sine die; and

the days on which either House is not in session because of an adjournment of more than 3 days to a day certain are excluded in the computation of the 30-calendar-day period involved.

Concurrent resolution disapproving reimposthon of price ceilings.—

The term “concurrent resolution of disapproval”, when used with respect to reimposition of maximum lawful prices under section 122(c) (1), means a resolution the matter after the resolving clause of which is as follows: “That the Congress does not approve of the reimposition of maximum lawful prices for first sales of natural gas under section 122(c) (1) of the Natural Gas Policy Act of 1978 pursuant to the transmittal by the President to the Congress on       , 19  .”, the blank spaces being filled with the appropriate date.

Concurrent resolution effecting reimposition of price ceilings.—

The term “concurrent resolution”, when used with respect to reimposition of maximum lawful prices under section 122(c)(2), means a resolution the matter after the resolving clause of which is as follows: That the Congress favors reimposition of maximum lawful prices for first sales of natural gas as provided for under section 122(c) (2) of the Natural Gas Policy Act of 1978.”.

Ante, p. 3370.

Resolution of disapproval of incremental pricing action.—

The term “resolution of disapproval”, when used with respect to incremental

Ante, p. 3350.

pricing rules, means a resolution the matter after the resolving clause of which is as follows: “That the        does not approve the proposed rule under section    of the Natural Gas Policy Act of 1978 (relating to incremental pricing of natural gas) a copy of which was trasnmitted to the Congress on      .”, the first blank being filled with the House in which such resolution is introduced, the second blank space being filled with the section under which proposed rule was issued, and the following blank spaces being filled with the appropriate date. For purposes of this paragraph, the term “rule” means any rule or any amendment thereto (other than a technical or clerical amendment).

Congressional rulemaking power.—

This subsection is enacted by Congress—

Referral.—

A resolution described by paragraph (2) once introduced with respect to any submittal shall immediately be referred to a committee (and all resolutions with respect to the same submittal shall be referred to the same committee) by the President of the Senate or the Speaker of the House of Representatives, as the case may be.

Discharge.—

Floor consideration.—

Determination on motions.—

Subsequent action.—

Notwithstanding any of the provisions of this subsection, if a House has approved a resolution with respect to a submittal, then it shall not be in order to consider in that House any other resolution with respect to the same such submittal.

Sales.—

Transportation.—

note.

Sales.—

Other charges.—

Certificate may not be denied based upon price.—

The Commission may not deny, or condition the grant of, any certificate under section 7 of the Natural Gas Act based upon the

15 USC 717f.

amount paid in any sale of natural gas, if such amount is deemed to be just and reasonable under subsection (b) of this section.

Recovery of just and reasonable prices paid.—

For purposes of sections 4 and 5 of the Natural Gas Act, the Commission

15 USC 717c, 717d.

may not deny any interstate pipeline recovery of any amount paid with respect to any purchase of natural gas if—

except to the extent the Commission determines that the amount paid was excessive due to fraud, abuse, or similar grounds.

pursuant to any order under section 302(c) or section 303 (b), (c), (d),or (i) or this Act;

Ante, pp. 3382, 3383.

authorized by the Commission under section 311(a) of this Act.

Ante, p. 3388.