Natural Gas Market Reform Act

Natural Gas Market Reform Act - Provides that where there is a contract for the first sale of high-cost natural gas that includes a take-or-pay clause or an indefinite price escalator clause, such contract shall be deemed to include contract provisions that provide: (1) if the purchaser determines that any or all of the natural gas subject to the contract cannot be marketed at the price otherwise specified by the contract, the purchaser may reduce the price to be paid under the contract, reduce the volume of gas to be subject to any take-or-pay clause of the contract, or both, to the extent necessary to prevent the natural gas from being unmarketable; and (2) within 15 days after the purchaser notifies the seller of a new price for gas or of a new volume of natural gas to be subject to any take-or-pay clause, the seller may terminate the contract without penalty or may terminate the contract with respect to the take-or-pay clause. Provides that any new price or any new volume of natural gas with respect to a take-or-pay clause will take effect 15 days after the purchaser notifies the seller of such new price or such new volume.

Provides that an interstate or intrastate pipeline that was a party to a contract for natural gas that was terminated under these provisions shall have an obligation to transport the natural gas that was subject to the terminated contract.

Authorizes relief from the transportation obligation of the pipeline where a hearing is conducted and the transportation of the gas would require construction of additional facilities or would impair the ability of the pipeline to serve its existing customers adequately.

Establishes the rate for any transportation of natural gas at five cents per million British thermal units plus the cost of such transportation for gas obligated to be transported by these provisions.