Page:United States Statutes at Large Volume 92 Part 3.djvu/730

 92 STAT. 3362

PUBLIC LAW 95-621—NOV. 9, 1978 graph for the preceding month multiplied by the monthly equivalent of the annual inflation adjustment factor applicable for such month. (2) PRODUCTION AFTER I9 84 FROM WELLS 5,000 FEET OR LESS IN DEPTH.—Effective beginning with the month of January 1985 and in any month thereafter, in the case of any first sale of natural gas which was not committed or dedicated to interstate commerce on April 20, 1977, and which is produced from a new, onshore production well from a completion location located at a depth of 5,000 feet or less, the maximum lawful price under this section for any such natural gas delivered during any month shall be a price which is midway between— (A) the maximum lawful price, per million Btu's, computed for such month under section 102 (relating to new natural gas); and (B) the maximum lawful price, per million Btu's, computed for such month under paragraph (1). (c) DEFINITION OF NEW, ONSHORE PRODUCTION WELL.—For purposes

of this section, the term "new, onshore production well" means any new well (other than a well located on the Outer Continental Shelf)— (1) the surface drilling of which began on or after February 19, 1977; (2) which satisfies applicable Federal or State well-spacing requirements, if any; and (3) which is not within a proration unit— (A) which was in existence at the time the surface drilling of such well began; (B) which was applicable to the reservoir from which such natural gas is produced; and (C) which applied to a well (i) which produced natural gas in commercial quantities or (ii) the surface drilling of which was begun before February 19, 1977, and which was thereafter capable of producing natural gas in commercial quantities. (d) EXCLUSION OF CERTAIN ALASKA NATURAL GAS.—The preceding

15 USC 719 °°*^ 15 USC 3314. 15 USC 717w.

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. 104. CEILING PRICE FOR SALES OF NATURAL GAS DEDICATED TO INTERSTATE COMMERCE. (a) APPLICATION.—In the case of natural gas committed or dedicated to interstate commerce on the day before the date of the enactment of this Act and for which a just and reasonable rate under the Natural Gas Act was in effect on such date for the first sale of such natural gas, the maximum lawful price computed under subsection (b) shall apply to any first sale of sudh 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 the higher of— (A)(i) the just and reasonable rate, per million Btu's, established by the Commission which was (or would have been) applicable to the first sale of such natural gas on April 20, 1977, in the case of April 1977; and

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