Page:United States Statutes at Large Volume 92 Part 3.djvu/732

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PUBLIC LAW 95-000—MMMM. DD, 1978

92 STAT. 3 3 6 4

PUBLIC LAW 95-621—NOV. 9, 1978 (A) IN GENERAL.—Effective January 1985, and each month thereafter, in the case of any first sale of n a t u r a l gas, which is sold at a price established under any indefinite price escalat o r clause of any existing contract or successor to an existing contract and for which the contract price on December 31, 1984, is higher than $1.00 per million Btu's, the maximum lawful price under this section for any such n a t u r a l gas delivered during any month shall be the higher of— (i) the maximum lawful price, per million Btu's, computed under paragraph (2)(B); or (ii)(I) in the case of January 1985, the maximum lawful price, per million Btu's, computed under section 102 (relating to new natural gas) for such month; and ( II) in the case of any month thereafter, the maximum lawful price, per million Btu's, prescribed under this clause for the immediately preceding month multiplied by the monthly equivalent of the sum of a factor equal to the annual inflation adjustment factor applicable for such month plus.03. (B)

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DEFINITION OF INDEFINITE PRICE ESCALATOR CLAUSE.—

For purposes of this paragraph, the term "indefinite price escalator clause" includes any provision of any contract— (i) which provides for the establishment or adjustment of the price for n a t u r a l gas delivered under such contract by reference to other prices for natural gas, for crude oil, or for refined petroleum p r o d u c t s; or (ii) which allows for the establishment or adjustment of the price of n a t u r a l gas delivered under such contract by negotiation between the parties. (C)

CONTRACT MODIFICATIONS AFTER MAY 3, 197 8, TO BE DIS-

REGARDED.—In the case of any n a t u r a l gas which was subject to any contract on May 3, 1978, that contained an indefinite price escalator clause on such date, no amendment to or modification of the operation of such contract made after such date may have the effect of limiting or precluding the application of this paragraph on or after January 1, 1985, to prices allowed with respect to such n a t u r a l gas. (D) EXCLUSION.—Subparagraph (A) shall not apply to any first sale of new n a t u r a l gas (as defined in section 102 ^ c)), stripper well n a t u r a l gas (as defined in section 108 (b)), high-cost n a t u r a l gas (as defined in section 1 0 7 (c)), n a t u r a l gas produced from a new, onshore production well (as defined m section 103(c)) from a completion location located a t a depth of more than 5,000 feet, and, beginning July 1, 1987, or, if later, the date of expiration of any price controls reimposed under section 122, n a t u r a l gas produced from any new, onshore production well (as defined in section 103(c)) from a completion location located at a depth of 5,000 feet or less. (c) DEFINITION OF CONTRACT P R I C E. — For purposes of t h i s section,

the term "contract price", when used with respect to any specific date, means— (1) the price paid, per million B t u ' s, under a contract for deliveries of n a t u r a l gas occurring on such date; o r (2) if no deliveries of n a t u r a l gas occurred under such contract on such date, the price, per million Btu's, that would have been p a i d h a d such deliveries occurred on such date.