Page:United States Statutes at Large Volume 92 Part 3.djvu/729

 PUBLIC LAW 95-621—NOV. 9, 1978

92 STAT. 3361

ducing in paying quantities (within the meaning of such Order); (ii) any production capability evidence meeting the requirements of OCS Order No. 4 demonstrates that, as of the time such evidence is obtained, the reservoir is capable of producing in paying quantities (within the meaning of such Order); or (iii) subject to paragraph (3), an induction-electric log, sidewall cores and core analysis, or a wire line formation test indicates that, as of the time of such test, the reservoir is commercially producible. (3) E F I ^ C T OF NEGATIVE PRODUCTION CAPABILITY TESTS.—For

purposes of paragraph (1), a reservoir shall not be considered as having been discovered before July 27, 1976, by the penetration of such reservoir by a weU before July 27, 1976, if, with respect to such well (A) a production test meeting the requirements of OCS Order No. 4 was performed and the results of such test fail to demonstrate that, as of the time of such test, such reservior was capable of producing in paying quantities (within the meaning of such Order); and (B) production capability evidence meeting the requirements of OCS Order No. 4 does not exist or, if existing, does not demonstrate that, as of the date such evidence was obtained, such reservoir was capable of producing in paying quantities (within the meaning of such Order). (4) BURDEN OF PROOF.—For purposes of paragraph (1), the

producer shall have the burden of showing that— (A) no test described in paragraph (2)(B)(i) or (iii) was performed and no evidence described in paragraph (2)(B) (ii) or (iii) exists; or (B) if any such test was performed or such evidence exists, the results of such test or such evidence do not provide the applicable demonstration or indication specified under paragraph (2). (5) DEFINITION OF OCS ORDER NO. 4.—For purposes of this subsection, the term "OCS Order No. 4" means the order numbered 4 of the Conservation Division, Geological Survey, Department of the Interior, as approved by the Chief of the Conservation Division on August 28, 1969. (e) EXCLUSION OP CERTAIN ALASKA NATURAL GAS.—The preceding

provisions of this section shall not apply to any natural gas produced from the Prudhoe Bay Unit of Alaska and transported through the natural gas transportation system approved under the Alaska Natural Gas Transportation Act of 1976. SEC. 103. CEILING PRICE FOR NEW, ONSHORE PRODUCTION WELLS. (a) APPLICATION.—In the case of natural gas determined in accordance with section 503 to be produced from any new, onshore production well, the maximum lawful price computed under subsection (b) shall apply to any first sale of such natural gas delivered during any month. (b) MAXIMUM LAWFUL PRICE.— (1) GENERAL RULE.—The maximum

lawful price under this

section for any month shall be— (A^ $1.75 per million Btu's, in the case of April 1977; and (B) in the case of any month thereafter, the maximum lawful price, per million Btu's, prescribed under this para-

15 USC 719 "^^^ 15 USC 3313. Post, p. 3397.

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