Page:United States Statutes at Large Volume 92 Part 3.djvu/761

 PUBLIC LAW 95-621—NOV. 9, 1978

92 STAT. 3393

(2) natural gas, the sale in interstate commerce of which— (A) is authorized under section 302(a) or 3 1 1 (b); or (B) is pursuant to a n assignment under section 3 1 2 (a); and (3) n a t u r a l gas, the transportation i n interstate commerce of which i^— (A) pursuant to any order under section 302(c) or section 303(b),(c),(d),or(h);or (B) authorized by the Commission under section 3 1 1 (a). SEC. 315. CONTRACT DURATION; RIGHT OF FIRST REFUSAL; FILING OF CONTRACTS AND AGREEMENTS.

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(a) CONTRACT D U R A T I O N. — ^^ ^ ^ ^ 3375. (1) GENERAL RULE.—The Commission may, by rule or order,

specify the minimum duration of any contract (other than any existing contract) for the purchase of natural gas to which section 6 0 1 (a)(1)(A) or (B) is applicable. I n no case may the minimum contract duration specified under this paragraph applicable to natural gas produced from any reservoir exceed 15 years or, if less, the commercially producible life of such reservoir. The provisions of this paragraph shall not apply to contracts of n a t u r a l gas subject to the requirements of paragraph (3). (2) NONDISCRIMINATORY APPLICATION.—

(A) IN GENERAL.—Except as provided in subparagraph (B), the Commission may not exercise the authority provided under paragraph (1) in a manner which— (i) provides an advantage to interstate pipelines by diverting supplies of natural gas to interstate pipelines and thereby denying adequate supplies of natural gas to intrastate pipelines; or (ii) otherwise discriminates between purchases by interstate pipelines and intrastate pipelines of natural gas. (B) SPECIAL CIRCUMSTANCES.—The Commission may v a r y

any requirement established under paragraph (1) with respect to any contract by a n interstate pipeline or intrastate pipeline to the extent necessary to respond to special circumstances. (3) CONTRACTS FOR PURCHASE OF OCS NATURAL GAS.—The Com-

mission shall prescribe a rule which shall require that any first sale contract (other than any existing contract) for the purchase of n a t u r a l gas which is produced from any reservoir on the Outer Continental Shelf and which is new natural gas (as defined in section 102(b)) o r high-cost natural gas ( a s defined i n section Ante, p. 3358. 107(c)(1), (2), (3), or (4)) shall be for a duration of not less Ante, p. 3366. than 15 years or, if less, the commercially producible life of the reservoir. (b) OFFERS; E I G H T OF F I R S T R E F U S A L. —

(1) APPLICATION.—This subsection shall apply with respect to any natural gas which is committed or dedicated to interstate commerce on the day before the date of the enactment of this Act and which is— (A) high-cost natural gas (as defined in section 107(c)(1), (2),(3),or (4)); (B) new n a t u r a l gas (as defined i n section 1 0 2 (c)); or (C) natural gas produced from any new, onshore production well (as defined in section 103(c)). Ante, p. 3361.

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