Natural Gas Production, Utilization, and Conservation Act

Natural Gas Production, Utilization, and Conservation Act - Title I: Removal of Artificial Impediments on Natural Gas Usage - Repeals the Powerplant and Industrial Fuel Use Act of 1978.

Terminates the incremental pricing requirements of the Natural Gas Policy Act of 1978 (the Act).

Repeals provisions of the Public Utility Regulatory Policies Act of 1978 relating to retail policies for natural gas utilities.

Title II: Incentives for Increased Natural Gas Production - Provides for the decontrol of all first sales of natural gas, effective January 1, 1985. Sets forth ceiling price levels affecting specified sales prior to the 1985 decontrol. Repeals standby price control authority.

Provides that effective January 1, 1985, provisions of the Act relating to the interstate sale of natural gas shall not apply to any first sale of gas committed or dedicated as of the day before enactment of this Act. Provides that prior to January 1, 1985, those same provisions of the Act shall not apply to any first sale of natural gas which was committed or dedicated to interstate commerce as of the day before enactment and which is: (1) high cost natural gas; (2) new natural gas; (3) natural gas produced from any new onshore production well; or (4) natural gas produced from wells drilled on or before January 1, 1982.

Redefines sale to mean any sale, exchange, or other transfer for value (with respect to natural gas owned and produced by any pipeline, includes the intracorporate transfer of such natural gas to the transmission or distribution division of the pipeline).

Includes in the definition of first sale any sale of any volume of natural gas to the the transmission or distribution division of a pipeline in the case of natural gas owned and produced by that pipeline.

Title III: Removal of Artificial Impediments to Natural Gas Sales - Provides that, prior to January 1, 1985, those provisions of the Act relating to the interstate sale of natural gas shall not apply to any first sale of natural gas which was committed or dedicated as of the day before enactment of this Act and which is natural gas from the Outer Continental Shelf, if such sale is to an intrastate pipeline, local distribution company, or end user within any State.

Exempts natural gas from the Outer Continental Shelf that is transported on behalf of any intrastate pipeline, local distribution company, or end user located within an affected State, from the provisions of the Act relating to the sale of gas, except that any pipeline may not charge more than a just and reasonable rate.

Requires rates on sales of synthetic fuels charged by interstate pipelines to be just and reasonable.

Provides that for purposes of provisions of the Act concerning the sale of natural gas the jurisdiction of the Federal Energy Regulatory Commission shall not apply to any sale, or resale, of natural gas and such gas shall not be deemed to be in interstate commerce if the gas sold was transported in interstate commerce by an interstate pipeline pursuant to an emergency presidential order.

Prohibits the Commission from specifying the minimum duration of any contract for the purchase of natural gas. Prohibits the Commission, in the case of any person who would have been entitled to receive natural gas committed or dedicated to interstate commerce but for the deregulation provisions of this Act, from requiring that such gas be offered for sale to such person, either directly or through the granting of any right of first refusal of an offer made to any other person.

Grants the President emergency authority over any pipeline.

Provides special pricing provisions between January 1, 1985, and January 1, 1988, for: (1) contracts in effect before enactment and which had not been renegotiated; and (2) certain high-cost gas contracts not renegotiated after December 31, 1984.