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 that the provisions of the Act respecting the maximum lawful price for any first sale (a sale to a pipeline or other distributor) of natural gas produced from a well shall not apply if: (1) surface drilling began on or after January 1, 1983; and (2) a license or other proper form of authorization was issued with respect to drilling the well.

Sets forth ceiling prices for certain pre-1983 wells. Prohibits the importation of natural gas unless the import price is not above the qualified import price (as defined by this Act).

Provides for the decontrol of all first sales of natural gas, effective January 1, 1985. Repeals standby price control authority.

Provides that effective January 1, 1985, provisions of the Natural Gas 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 such 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, 1983.

Prohibits the Federal Energy Regulatory 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.

Prohibits an interstate pipeline from passing on to its customers cost increases (cost passthroughs) in the natural gas it purchases from suppliers if the amount paid by the pipeline was excessive due to fraud (presently, the prohibition applies if the price is excessive due to fraud, abuse, or similar grounds).

Authorizes a seller to make determinations in lieu of the appropriate Federal or State agency, for purposes of defining certain natural gas, by making a sworn certification to the agency.

Title III: Removal of Artificial Impediments to Natural Gas Sales - Provides that, prior to January 1, 1985, those provisions of the Natural Gas 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 Natural Gas Act relating to the sale of gas, except that any pipeline may not charge more than a just and reasonable rate.

Authorizes the Commission to permit any pipeline to sell, at rates that are just and reasonable, natural gas to: (1) any other pipeline; and (2) any local distribution company.

Provides that, for purposes of provisions of the Natural Gas 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.

Grants the President emergency purchase and allocation authority over any pipeline.

Declares against public policy and unenforceable any provision of any contract for the sale (other than a first sale) or transportation of natural gas which prohibits: (1) the commingling of natural gas subject to such contract with natural gas which has been transported across the borders of any State; or (2) the sale or transportation in interstate commerce of natural gas subject to such contract.