Page:United States Statutes at Large Volume 92 Part 3.djvu/737

 PUBLIC LAW 95-621—NOV. 9, 1978

92 STAT. 3369

maximum lawful price applicable to the first sale of such natural gas under this subtitle if such first sale price exceeds the maximum lawful price to the extent necessary to recover— (1) State severance taxes attributable to the production of such n a t u r a l g a s and borne by the seller, b u t only to the extent the amount of such taxes does not exceed the limitation of subsection (b);and (2) any costs of compressing, gathering, processing, treating, liquefying, or t r a n s p o r t i n g such n a t u r a l gas, or other similar costs, borne by the seller and allowed for, by rule or order, by the Commission. (b) L I M I T A T I O N ON STATE SEVERANCE T A X E S. — The State severance

tax allowable under subsection (a)(1) with respect to the production of any natural gas may not include any amount of State severance taxes borne by the seller which results from a provision of State law enacted on or after December 1, 1977, unless such provision of law is equally applicable to natural gas produced in such State and delivered in interstate commerce and to n a t u r a l gas produced in such State and not so delivered. (c) DEFINITION o r STATE SEVERANCE T A X. — For purposes of this

section, the term " State severance tax " means any severance, production, o r similar tax, fee, or other levy imposed on the production of natural gas— (1) by any State o r Indian tribe (as defined in section 106 (b)(2)(B)(ii));and (2) by any political subdivision of a State if the authority to impose such tax, fee, o r other levy is granted to such political subdivision under State law.

Subtitle B—Decontrol of Certain Natural Gas Prices SEC. 121. ELIMINATION OF PRICE CONTROLS FOR CERTAIN NATURAL GAS SALES. (a) GENERAL, RULE.—Subject to the reimposition of price controls 15 USC 3331.. as provided in section 122, the provisions of subtitle A respecting the maximum lawful price for the first sale of each of the following categories of n a t u r a l gas shall, except as provided in subsections (d) and (e), cease to apply effective January 1, 1985: (1) N E W NATURAL GAS.—New natural gas (as defined in section 102(c)). (2) N E W, ONSHORE PRODUCTION WELLS.—Natural g a s produced

from any new, onshore production well (as defined in section 103 (c)), if such n a t u r a l gas—• (A) was not committed o r dedicated to interstate commerce on April 20, 1977; and (B) is produced from a completion location which is located a t a depth of more than 6,000 feet. (3) INTRASTATE CONTRACTS I N EXCESS OF $I.OO.—Natural gas sold

under a n existing contract, any successor to a n existing contract, or any rollover contract, if— (A) such n a t u r a l g a s was not committed o r dedicated to interstate commerce on the d a y before the date of the enactment of this Act; and (B) the price paid for the last deliveries of such natural gas occurring on December 31, 1984, or, if no deliveries

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