Page:United States Statutes at Large Volume 92 Part 3.djvu/537

 PUBLIC LAW 95-617—NOV. 9, 1978

92 STAT. 3169

of any State if applied with respect to any transfer approved under the rule required under subsection (a)(1). (d) CONTRACTUAL OBLIGATIONS UNAFFECTED.—The person acquiring

contractual interests transferred pursuant to the rule required under subsection (a)(1) shall assume the contractual obligations which the person transferring such contractual interests has under such contract. This section shall not relieve the person transferring such contractual interests from any contractual obligation of such person under such contract if such obligation is not performed by the person acquiring such contractual interests. (e) DEFINITIONS.—For purposes of this section— (1) The term "natural gas" has the same meaning as provided by section 2(5) of the Natural Gas Act. 15 USC 717a. (2) The term "just compensation", when used with respect to any contractual interests pursuant to the rule required under subsection (a)(1), means the maximum amount of, or method of determining, consideration which does not exceed the amount by which— (A) the reasonable costs (not including capital costs) incurred, during the remainder of the period of the contract with respect to which contractual interests are transferred pursuant to the rule required under subsection (a)(1), in direct association with the use of heavy petroleum fuel oil as a fuel in the applicable facility, exceeds (B) the price under such contract for natural gas, subject to such contract, delivered during such period. For purpoi:es of subparagraph (A), the reasonable costs directly associated with the use of heavy petroleum fuel oil as a fuel shall include an allowance for the amortization, over the remaining useful life, of the undepreciated value of depreciable assets located on the premises containing such facility, which assets were directly associated with the use of natural gas and are not usable in connection with the use of such heavy petroleum fuel oil. (3) The term "just compensation", when used with respect to any intrastate pipeline which would have transported or distributed natural gas with respect to which contractual interests are transferred pursuant to the rule required under subsection (a)(1), means an amount equal to any loss of revenue, during the remaining period of the contract with respect to which contractual interests are transferred pursuant to the rule required under subsection (a)(1), to the extent such loss— (A) is directly incurred by reason of the discontinuation of the transportation or distribution of natural gas resulting from the transfer of contractual interests pursuant to the rule required under subsection (a)(1); and (B) is not offset by— (i) a reduction in expenses associated with such discontinuation; and (ii) revenues derived from other transportation or distribution which would not have occurred if such contractual interests had not been transferred. (4) The term "contractual interests" means the right to receive natural gas under contract as affected by an applicable curtailment plan filed with the Commission or the appropriate State regulatory authority. (5) The term "interstate pipeline" means any person engaged in natural gas transportation subject to the jurisdiction of the Commission under the Natural Gas Act. 15 USC 717w.

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