Natural Gas Policy Act Amendments of 1986

Natural Gas Policy Act Amendments of 1986 - Title I: Open Access to Transportation - Amends the Natural Gas Policy Act of 1978 to authorize the Federal Energy Regulatory Commission (the Commission) to: (1) allow any pipeline to transport natural gas on behalf of any person; (2) require pipelines to transport gas without discrimination; and (3) require pipelines which receive gas to provide nondiscriminatory transportation services.

Requires the Commission (upon request by any person) to direct an interstate pipeline to provide transportation service (without discrimination) unless such pipeline demonstrates to the Commission that it is incapable of providing such service.

Title II: Removal of Wellhead Price Controls and Repeal of Jurisdiction Over First Sales - Removes wellhead price controls over all natural gas first sales beginning April 1, 1987. Removes such control for certain gas sales contracts executed after March 1, 1986.

Removes Commission jurisdiction over first sales of natural gas committed or dedicated as of the day before enactment of this Act. Repeals Commission authority to specify the minimum duration of certain natural gas contracts (thus removing all non-price regulation of first sales of natural gas).

Declares that, with respect to ceiling prices of certain natural gas sales, the last price paid for such gas shall be considered a federally established rate for purposes of an area rate clause.

Title III: Repeal of Certain Restrictions on the Use of Natural Gas and Petroleum Use and Pricing - Amends the Powerplant and Industrial Fuel Use Act of 1978 to: (1) repeal the prohibitions against the use by electric powerplants and major fuel-burning installations of petroleum and natural gas as primary energy sources; (2) remove the restrictions placed upon Federal major fuel-burning installations against the use of natural gas and petroleum as primary energy sources; and (3) repeal the guidelines for the emergency use of natural gas or petroleum as a primary energy source by any person operating a peakload powerplant or a major fuel-burning installation.

Revokes the authority of the Secretary of Energy to require any major fuel-burning installation to furnish certain information regarding the use of primary energy sources of fuel.

Amends the Natural Gas Policy Act of 1978 to repeal the natural gas incremental pricing provisions. States that incremental pricing rules promulgated by the Commission shall continue in effect only with respect to the flow-through of costs incurred before enactment of this Act, including any surcharges based on such costs.