ties, or (if the parties are unable to agree) in an amount determined by the Commission in accordance with the provisions of this section. (2) For purposes of this subsection— (A) The term "curtailed user" means a powerplant to which a rule under this section is applicable. (B) The term "transferred natural gas" means natural gas which a curtailed user does not consume by reason of a rule under this section and which is made available to another person. (C) A person is a supplier of a curtailed user if he sold natural gas to such user, or sold natural gas to any person for resale (directly or indirectly) to such user. (g) This section shall not apply to any powerplant of which the maximum daily use of natural gas does not exceed fifty thousand cubic feet. (h) For purposes of this section, the terms "powerplant" and "petroleum product" have the same meanings as such terms have under section 2 of the Energy Supply and Environmental Coordination Act of 1974. (i) Section 2(f) (1) of the Energy Supply and Environmental Coordination Act of 1974 is amended by striking out "June 30, 1975" and inserting in lieu thereof "June 30, 1976". (j) This section (other than subsection (i)) does not affect any authority under the Energy Supply and Environmental Coordination Act of 1974. PRODUCTION OF GAS AT THE MAXIMUM EFFICIENT RATE AND TEMPORARY SEC. 7. (a) Except as provided in subsection (c) of this section, the Secretary of Interior shall, by rule, require natural gas to be produced from fields, designated by such Secretary, at the maximum efficient rate of production, or at the temporary emergency production rate determined for such field. The Commission shall, by rule, prohibit the sale of quantities of natural gas, in excess of that which would be produced at the maximum efficient rate, produced from a field, pursuant to a rule or order to produce at such field's temporary emergency production rate, to any person other than a priority interstate purchaser. (b) (1) Within forty-five days after the date of enactment of this Act, the Secretary of the Interior, by rule, shall determine the maximum efficient rate of production and, if any, the temporary emergency production rate, for each field on Federal lands which such Secretary determines produces, or has the capacity to produce, significant quantities of natural gas. (2) Each State or the appropriate agency thereof may determine the maximum efficient rate of production and, if any, the temporary emergency production rate for each field (other than a field on Federal land) within such State which the State or appropriate agency determines produces, or has the capacity to produce, significant quantities of natural gas. (3) If, at the end of the forty-five-day period which begins on the date of enactment of this Act, a State or the appropriate agency thereof has not determined the maximum efficient rate of production or the temporary emergency production rate for any field (other than a field on Federal land) within such State, which field the Secretary of the Interior determines produces, or has the capacity to produce, significant quantities of natural gas, the Secretary of the Interior may, by rule, specify the maximum efficient rate of production or the temporary emergency production rate for any such field. (c) (1) The authority under subsection (a) to require production from any field at such field's temporary emergency production rate may be exercised only if natural gas made available as a result of the exercise of such authority could be made available, directly or indirectly, to a priority interstate purchaser. (2) If loss of ultimate recovery of crude oil or natural gas, or both, occurs or will occur as the result of an order to produce at the temporary emergency production rate, such loss shall be deemed a taking by condemnation, and the owner of any property right diminished by such taking may bring an action in an appropriate United States district court to recover just compensation from the United States or any person obligated to indemnify the United States. (3) The Administrator shall require that any priority purchaser who purchases natural gas supplies made available through the exercise of authority under subsection (a) to require production in any field at such field's temporary emergency production rate, provide adequate assurance of indemnification of the United States for any liability which the United States may incur by reason of action taken pursuant to the authority of subsection (a) and such order may, in addition, require the posting of bond by such purchaser as assurance of indemnification. (d) For purposes of this section— (1) The term "maximum efficient rate of production" means the maximum rate of production of natural gas which may be sustained without loss of ultimate recovery of crude oil or natural gas, or both, under sound engineering principles. (2) The term "temporary emergency production rate" means the maximum rate of production for a field (A) which rate is above the maximum rate of production established for such field; and (B) which may be maintained for a temporary period of less than ninety days without reservoir damage and without significant loss of ultimate recovery of crude oil or natural gas, or both, from such field. (e) Nothing in this section shall be construed to authorize the production from any Naval Petroleum Reserve subject to the provisions of chapter 641 of title 10, United States Code. (f) Natural gas produced from a field in excess of that quantity which would have been produced at the maximum efficient rate of production (as defined in subsection (d) (1)) of such field, pursuant to a rule or order issued under the authority of subsection (a), may be sold for a price equal to the area ceiling price for the applicable area pursuant to section 4 of this Act as if it were new natural gas. PIPELINE INTERCONNECTIONS SEC. 8. To carry out the purposes of this Act, the Commission may, by rule, direct any pipeline to establish a physical interconnection between any specified facility of any other such pipeline. The Commission shall apportion equitably the costs of any such interconnection to the pipeline, to priority interstate purchasers initially benefiting therefrom, or to both. PENALTIES SEC. 9. (a) (1) Any person who is determined by the Commission, Administrator, or Secretary, after notice and an opportunity for a presentation of views, to have violated a provision of this Act or any rule or order under this Act (for which such Commission, the Administrator, or the Secretary has responsibility), shall be liable to the United States for a civil penalty of not more than $10,000 for each violation; and if any such violation is a continuing one, each day of violation constitutes a separate offense. The amount of any such penalty shall be assessed by the Commission, the Administrator or the Secretary by written notice. In determining the amount of such penalty, the Commission, the Administrator or the Secretary (as the case may be) shall take into account the nature, circumstances, extent, and gravity of the violation committed and, with respect to the person found to have committeed such violation, the degree of culpability, any history of prior offenses, ability to pay, effect on ability to continue to do business, and such other matters as justice may require. (2) Such civil penalty may be recovered in an action brought by the Attorney General on behalf of the United States in the appropriate district court of the United States or, prior to referral to the Attorney General, such civil penalty may be compromised by the Commission, the Administrator, or the Secretary, as may be applicable. The amount of such penalty, when finally determined (or agreed upon in compromise), may be deducted from any sums owed by the United States to the person charged. All penalties collected under this subsection shall be deposited in the Treasury of the United States as miscellaneous receipts. (b) A person is guilty of an offense if he willfully violates a provision of this Act or rule or order under this Act. Upon conviction, such person shall be subject, for each offense, to a fine of not more than $25,000, imprisonment for a term not to exceed five years, or both. ENFORCEMENT SEC. 10. (a) The Attorney General, at the request of the Commission, the Administrator, or the Secretary (as the case may be), may bring an action for equitable relief to redress a violation by any person of a provision of this Act, or a rule or order under this Act. Any other person may bring a civil action alleging a violation of a provision of this Act or rule or order under this Act. (b) The district courts of the United States shall have jurisdiction with respect to any civil action brought under subsection (a). The court shall have the power to grant such equitable relief as is necessary to prevent, restrain, or remedy the effect of such violation, including declaratory judgment, mandatory or prohibitive injunctive relief, and interim equitable relief, and the courts shall further have the power to award (A) compensatory damages to any injured person or class of persons, (B) costs of litigation including reasonable attorney and expert witness fees, and (C) whenever and to the extent deemed necessary or appropriate to defer future violations, punitive damages. (c) A rule or order prescribed under this Act is subject to judicial review to the extent authorized by, and in accordance with, chapter 7 of title 5, United States Code, except that (A) the second sentence of section 705 thereof is not applicable, and (B) the appropriate court shall only hold unlawful and set aside such a rule or order on a ground specified in subparagraph (A), (B), (C), or (D) of section 706 (2) thereof. RULEMAKING SEC. 11. The Commission, the Administrator, or the Secretary, in addition to the authorities specifically granted herein, shall have authority to issue rules and orders applicable to any person which the Commission, the Administrator, or the Secretary (as the case may be) determines are necessary or appropriate to carry out the purposes of this Act. EXPIRATION SEC. 12. Section 4 (except subsection (g) thereof), 5, 6, 7, 8, and 11 of this Act shall expire on midnight June 30, 1976. [S. 2330, 94th Cong., 1st sess.] A BILL To provide temporary authority for the President, the Federal Power Commission, and the Federal Energy Administration to institute emergency measures to minimize the adverse effects of natural gas shortages, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Natural Gas Emergency Standby Act of 1975". TITLE I SEC. 101. (a) The Congress hereby finds that— (1) inadequate domestic production of natural gas has resulted in serious natural gas shortages which threaten severe economic dislocations and hardships, including loss of jobs, closing of factories and businesses, reduction of agricultural production, and curtailment of vital public services; (2) such shortages constitute a threat to the public health, safety, and welfare and to national defense; (3) such shortages have created an unreasonable burden on certain areas of the country and on certain sectors of the economy; (4) such shortages affect interstate and foreign commerce by jeopardizing the normal flow of commerce; (5) while deregulation of wellhead prices of new natural gas is urgently needed to minimize such shortages in the future, serious shortages during the next two winters cannot be averted; and (6) the adverse effects of such shortages can be minimized most efficiently and effectively by providing emergency authority to permit prompt further action by the Federal Government to supplement existing Federal, State, and local government efforts to deal with such shortages. (b) The purpose of this Act is to authorize the President or his delegate, the Federal Power Commission, and the Federal Energy Administration to deal with existing and imminent shortages and dislocations of natural gas in the national distribution system which jeopardize the public health, safety, and welfare; and to provide protection of natural gas service to customers who use natural gas for high priority end uses during periods of curtailed deliveries by natural gas companies. The authority granted under this Act shall be exercised for the purpose of minimizing the adverse impacts of shortages or dislocations on the American people and the domestic economy. SEC. 102. This Act shall expire at midnight June 30, 1977. TITLE II SEC. 201. This title may be cited as the "Interstate Pipeline Emergency Natural Gas Purchases Act of 1975". SEC. 202. The purpose of this title is to grant the Federal Power Commission authority to allow interstate pipeline companies with insufficient natural gas for their high priority consumers of natural gas to acquire natural gas from intrastate sources and other interstate pipeline companies on an emergency basis free from the provisions of the Natural Gas Act. SEC. 203. Section 2 of the Natural Gas Act (15 U.S.C. 717a) is amended by inserting immediately after subsection (9) thereof the following new subsections: "(10) 'Gas distributing company' means a person involved in the distribution or transportation of natural gas for ultimate public consumption for domestic, commercial, industrial, or any other use but does not include a natural gas company as defined in subsection (6) of this section. "(11) 'High priority consumer of natural gas' means a person so defined by the Commission by rules and regulations.". Sec. 204. Section 7 (c) of the Natural Gas Act (15 U.S.C. 717f(c)) is amended by designating the two unnumbered paragraphs thereof as paragraphs (1) and (2) and by adding at the end of paragraph (2) as designated hereby the following: "Provided further, That within fifteen days after the enactment of this amendment, the Commission may by regulation exempt from the provisions of this Act the transportation, sale, transfer or exchange of natural gas from any source, other than any land or subsurface area within the Outer Continental Shelf as defined in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(a)), by a producer, an interstate pipeline company, an intrastate pipeline company or gas distributing company, to or with an interstate pipeline company which does not have a sufficient supply of natural gas to fulfill the requirements of its high priority consumers of natural gas, and which is curtailing deliveries pursuant to a curtailment plant on file with the Commission. No exemption granted under this proviso shall exceed one hundred and eighty days in duration.". TITLE III SEC. 301. This title may be cited as the "Curtailed Consumers Emergency Natural Gas Purchasers Act of 1975". SEC. 302. The purpose of this title is to allow curtailed high priority consumers of natural gas to purchase natural gas from the intrastate market by enabling them to arrange for the transportation of such gas by regulated interstate pipeline companies. SEC. 303. Section 2 of the Natural Gas Act (15 U.S.C. 717a), as amended by section 203 of this Act, is amended further by inserting immediately after subsection (11) thereof, the following new subsection: "(12) 'Independent producer' means a person, as determined by the Commission, who is engaged in the production of natural gas and who is not (i) an interstate pipeline company or (ii) affiliated with an interstate pipeline company.”. SEC. 304. (a) Section 1 of the Natural Gas Act (15 U.S.C. 717) is amended by adding at the end thereof the following new subsection: "(d) The provisions of this Act shall not apply to the use of the facilities of a gas distributing company for the transportation of natural gas produced by an independent producer from lands, other than any land or subsurface area within the Outer Continental Shelf as defined in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(a)), and sold by such a producer directly to a high priority consumer of natural gas: Provided, That the rates applicable to the use of such facilities for the transportation of natural gas described in this subsection are subject to regulation by a State commission. The transportation of natural gas exempted from the provisions of this Act by this subsection is hereby declared to be a matter primarily of local concern and subject to regulation by the several States. A certification from such State commission to the Federal Power Commission that such State commission has regulatory jurisdiction over rates and service of such person and facilities and is exercising such jurisdiction shall constitute conclusive evidence of such regulatory power or jurisdiction.". (b) Subsection (c) of section 7 of the Natural Gas Act (15 U.S.C. 717f (c)), as amended by section 204 of this Act, is amended further by inserting therein the following new paragraph: "(3) Pursuant to the substantive and procedural provisions of this section the Commission may in its discretion issue a certificate of public convenience and necessity upon filing of an application by a natural gas company to transport natural gas produced by independent producers from lands, other than any land or subsurface area within the Outer Continental Shelf as defined in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(a)), and sold by such producers directly to existing high priority consumers of natural gas whose current supply of natural gas is curtailed due to natural gas company curtailment plans on file with the Commission: Provided, however, That in issuing a certificate pursuant to this paragraph, the Commission need not review or approve the price paid by a high priority consumer of natural gas directly to an independent producer.". TITLE IV SEC. 401. This title may be cited as the "Emergency Energy Supply and Environmental Coordination Act Amendments of 1975". SEC. 402. The purpose of this title is to continue the conservation of natural gas and petroleum products by fostering the use of coal by powerplants and major fuel burning installations, and if coal cannot be utilized, to provide authority to prohibit the use of natural gas when petroleum products can be substituted. SEC. 403. Section 2 of the Energy Supply and Environmental Coordination Act of 1974 is amended by: (a) redesignating subsections (e) and (f) as subsections (f) and (g), respectively; (b) amending redesignated subsection (g) (1) to read as follows: "(g) (1) Authority to issue orders or rules under subsections (a), (b), (d), and (e) of this section shall expire at midnight, June 30, 1977. Authority to issue orders under subsection (c) shall expire at midnight, June 30, 1975. Any rule or order issued under subsections (a) through (e) may take effect at any time before January 1, 1979.". (3) inserting after subsection (d) the following new subsection (e): "(e) (1) The Federal Energy Administrator may, by order, prohibit any powerplant or major fuel burning installation from burning natural gas if"(A) the Administrator determines that "(i) such powerplant or installation had on June 30, 1975 (or at any time thereafter) the capability and necessary plant equipment to burn petroleum products, "(ii) an order under subsection (a) may not be issued with respect to such powerplant or installation, "(iii) the burning of petroleum products by such powerplant or installation in lieu of natural gas is practicable, "(iv) petroleum products will be available during the period the order is in effect. "(v) with respect to powerplants, the prohibition under this subsection will not impair the reliability of service in the area served by the plant, and "(B) the Administrator of the Environmental Protection Agency has certified that such powerplant or installation will be able to burn the petroleum products which the Federal Energy Administrator has determined under subparagraph (A)(iv) will be available to it and will be able to comply with the Clean Air Act (including applicable implementation plans). "(2) An order under this subsection shall not take effect until the earliest date the Administrator of the Environmental Protection Agency has certified that the powerplant or installation can burn petroleum products and can comply with the Clean Air Act (including applicable implementation plans). "(3) The Federal Energy Administrator may specify in any order issued under this subsection the periods of time during which the order will be in effect and the quantity (or rate of use) of natural gas that may be burned by a powerplant or major fuel burning installation during such periods, including the burning of natural gas by a powerplant to meet peaking load requirements.". SEC. 404. Section 11(g) (2) of the Energy Supply and Environmental Coordination Act of 1974 is amended by striking out "June 30, 1975" wherever it appears and inserting in lieu thereof "June 30, 1977". TITLE V SEC. 501. This title may be cited as the "Propane Standby Allocation Act of 1975". SEC. 502. The purpose of this title is to provide standby authority for the President to allocate propane during periods of actual or threatened severe shortages of natural gas. |