Page:United States Statutes at Large Volume 92 Part 3.djvu/743

 PUBLIC LAW 95-621—NOV. 9, 1978

92 STAT. 3375

(b) F I R S T SALE ACQUISITION COSTS.—

'

(1) GENERAL RULE.—For purposes of this section, the first sale acquisition cost of natural gas is— (A) the price paid, p e r million Btu's, in any first sale of such natural gas, in the case of any natural gas produced i n the United States and acquired in such first sale; and (B) the price paid for such natural gas, per million Btu's, . • at the point of entry to the United States, in the case of natural gas or liquefied natural gas imported into the United States. Any amount of State severance taxes paid at any first sale shall not be included under subparagraph (A) or (B). (2)

INTERSTATE PIPELINE PRODUCTION.—For purposes of t h i s

section, in the case of any natural gas produced by any interstate pipeline or any affiliate of such pipeline, the first sale acquisition cost of such natural gas shall be determined in accordance with rules prescribed by the Commission. (c) INCREMENTAL PRICING T H R E S H O L D. — For purposes of t h i s sec-

tion, the incremental pricing threshold applicable for any month shall be— (1) $1.48 p e r million Btu's, in the case of March 1978; and (2) in the case of any month thereafter, the amount, p e r million Btu's, determined under this subsection for the preceding month multiplied by the monthly equivalent of the annual inflation adjustment factor (as defined in section 101(a)) applicable for such month. (d) CLASSIFICATION TO B E BASED ON PROVISIONS U N D E R W H I C H SALE

PRICE I S DETERMINED.—In the case of natural gas which is described in more than one paragraph of paragraph s (1) through (8) of subsection (a), the Commission shall, by rule, prescribe the method for determining under which such paragraph the first sale acquisition costs of such n a t u r a l gas shall be subject to the passthrough requirements of this title, based upon the classification of such n a t u r a l gas under which the price of such national gas is determined under title I. SEC. 204. METHOD OF PASSTHROUGH. (a) ESTABLISHMENT OF INCREMENTAL PRICING ACCOUNT. — The rule

required under section 201 (including any amendment under section 202 to such rule) shall provide that any interstate pipeline subject to such rule shall establish and maintain an incremental pricing account (hereinafter in this title referred to as the "account"). (b) CREDITS TO ACCOUNT.—The rule required under section 201 (including any amendment under section 202 to such rule) shall provide that any costs subject to the passthrough requirements of this title under section 203 ( and any carrying charges permitted by the Commission) shall be credited to the account of such pipeline. Amounts so credited may not be allocated to the rates and charges of such pipeline except to the extent provided under this section. (c) REQUIREMENT FOR D I R E C T PASSTHROUGH.—

(1) IN GENERAL.—The rule required under section 201 (including any amendment under section 202 to such rule) shall be designed to provide that any amounts i n any interstate pipeline's account will be passed through, in accordance with a method prescribed under paragraph (2), by means of a surcharge determined in accordance with a method prescribed under paragraph

15 USC 3344.

�