Natural Gas Act Amendments

Natural Gas Act Amendments - Provides that the Natural Gas Act and the jurisdiction of the Federal Power Commission will not apply to a small new producer contract, which is a contract adding gas reserves or acreage to an existing contract and allowing a natural gas producer to take no more than 10,000 Mc.f. per day.

Requires all other contracts adding gas reserves or acreage to an existing contract to be filed by the producer with the Commission, which may then approve, conditionally or unconditionally, or disapprove the contract. Specifies that once approved by the Commission, the contract is no longer subject to change by the Commission, except where price increases are concerned. Provides for stoppage of deliveries where a contract is disapproved. Allows deliveries under a contract to commence upon the filing of a contract and pending review by the Commission.

Provides that, in deciding whether to approve a contract, the Commission shall, after notice and opportunity for hearing, determine whether the contract is just and reasonable, is required by the public convenience and necessity, and is not unduly discriminatory or preferential.

Specifies that, in making such determination, the Commission shall consider the entire pricing structure, including escalation clauses, and all other terms and conditions of the contract, give due recognition to the length of the contract term for which the reserves are dedicated, and consider the present and future requirements of consumers for natural gas.

Forbids the acceptance of a contract for filing if it does not specify a termination time or if it includes: the 'two-party favored-nation clause' under the terms of which the price of the natural gas is or may be increased in event the purchaser shall pay or offer a higher price for natural gas; the 'third-party favored-nation clause' under the terms of which the price of the natural gas is or may be increased in the event some person not a party to the contract shall pay or offer a higher price for natural gas; the 'better market clause' or 'price redetermination clause' under the terms of which the price of the natural gas is or may be increased in the event the average of two or more prices which are paid by purchasers is greater; and the 'spiral escalation clause' under the terms of which the price of the natural gas is or may be increased in the event the resale rates of the purchaser under the contract are increased.