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or other formal commitment by such applicant to pay

to the Treasury at periodic intervals, not less than once

every 6 months, a royalty equal to a percentage of the

gross value of any natural gas or oil produced on such

lands. Such system does not involve the payment of any

advance bonus or lump-sum payment in cash; and

"(7) 'Secretary' means the Secretary of the Interior.".

TITLE V-FAIR TREATMENT FOR RETAILERS

OF PETROLEUM PRODUCTS

FRANCHISE REFORM AND FAIR MARKETING

SEC. 501. (a) Section 1 of the Act of August 8, 1956

(15 U.S.C. 1221), is amended by:

(1) deleting “among" in subsection (d) thereof and inserting in lieu thereof “affecting";

(2) adding the following new sentence at the end of subsection (b) thereof: "The term shall also mean any agreement or contract between a refiner or a distributor and a retailer or between a refiner and a dis

tributor, under which such retailer or distributor is

granted authority to use a trademark, trade name, service mark, or other identifying symbol or name owned by such refiner or distributor, or any agreement or contract

between such parties under which such retailer or dis

tributor is granted authority to occupy premises owned,

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leased, or in any way controlled by a party to such agreement or contract, for the purpose of engaging in the distribution or sale of petroleum products for purposes other than resale.";

(3) redesignating subsection "(a)" as subsection. "(b)" thereof, redesignating subsection "(b)" as subsection "(e)" thereof, redesignating subsection "(c)” as subsection "(a)" thereof, redesignating subsection 9 "(d)" as subsection "(c)" thereof, and redesignating

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subsection "(e)" as subsection "(f)" thereof; and

(4) inserting therein at the appropriate points the following four new subsections:

"(d) The term 'distributor' means a person engaged in

14 the sale, consignment, or distribution of petroleum products 15 to wholesale or retail outlets whether or not it owns, leases, 16 or in any way controls such outlets.

17

"(g) The term 'notice of intent' means a written state18 ment of the alleged facts which, if true, constitute a viola

19 tion of section 2 of this Act.

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"(h) The term 'refiner' means a person engaged in the 21 refining or importing of petroleum products.

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(i) The term 'retailer' means a person engaged in the 23 sale of any refined petroleum product for purposes other than 24 resale within any State, either under a franchise or independ

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1 ent of any franchise, or who was so engaged at any time after

2 the date of enactment of this subsection.".

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4

(b) Sections 2 through 5 of the Act of August 8, 1956

(15 U.S.C. 1222-1225), are amended by redesignating such

5 sections as sections 3 through 6 thereof.

6 (c) The Act of August 8, 1956 (15 U.S.C. 1221 et 7 seq.), as amended by this section, is amended by inserting a 8 new section 2 therein as follows:

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"NOTIFICATION

"SEC. 2. A refiner or distributor shall not cancel, fail to

renew, or otherwise terminate a franchise unless such refiner

or distributor has furnished, in accordance with this section, a 13 notice of intent to each distributor or retailer affected thereby. 14 Such notice of intent shall be in writing and sent to such 15 distributor or retailer by registered mail not less than 90 days 16 prior to the date on which such franchise will be canceled, 17 not renewed, or otherwise terminated. Such notice of intent 18 shall contain a statement of intention to cancel, not renew, or terminate together with the reasons therefor, the date on 20 which such action shall take effect, and a statement of the

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21 remedy or remedies available to such distributor or retailer

22 under this Act together with a summary of the applicable 23 provisions of this Act.".

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(d) Section 3 of the Act of August 8, 1956, as redesig

25 nated by this section (16 U.S.C. 1222), is amended by in

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1 serting "(a)" before the first sentence thereof and by add

2 ing at the end thereof the following new subsection:

3 "(b) A retailer or distributor may bring suit against

4

any distributor or refiner engaged in commerce, in a district

5 court of the United States in any judicial district in which 6 such distributor or refiner resides, is found, or has an agent, 7 without regard to the citizenship of the parties or the 8 amount in controversy. Such retailer or distributor shall 9 recover in such action threefold any actual damages sustained 10 by him, the cost incurred in bringing such action including 11 a reasonable attorney's fee, and such equitable relief as the 12 court deems necessary or appropriate to remedy the effects 13 of conduct prohibited under this Act. Such equitable relief 14 includes declaratory judgment, mandatory or prohibitive 15 injunctive relief, and interim equitable relief. The court may 16 not, however, grant mandatory or prohibitive injunctive 17 relief in any case of failure to renew a franchise if it finds 18 that the reason for such failure to renew was the distributor's 19 or refiner's withdrawal from doing business in commerce in 20 the State in which such retailer or distributor was engaged 21 in commerce. The court is further authorized in an action 22 under this subsection to grant punitive damages to such 23 retailer or distributor where indicated, by reason of the 24 failure of such distributor or refiner to perform or comply 25 with any terms or provision of an applicable franchise or by

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1 reason of the conduct of such distributor or refiner in termi2 nating, canceling, or not renewing a franchise with such 3 retailer or distributor. It shall be a defense to any action 4 brought under this subsection that the retailer or distributor 5 failed to comply substantially with an essential and reason6 able requirement of an applicable franchise or that such 7 retailer or distributor failed to act in good faith in carrying 8 out the terms of such franchise.".

9 TITLE VI-TERMINATION OF WASTEFUL RATE

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STRUCTURES

PARITY IN RATES

SEC. 601. Section 5 (b) of the Natural Gas and Oil 13 Act (15 U.S.C. 717c (b)), as amended by this Act, is 14 amended by adding at the end thereof the following new

sentence: "Commencing on January 1, 1975, and continu16 ing until the removal of all rate differences which are based 17 either on (A) the quantity of natural gas or oil sold; or 18 (B) any distinctions between domestic, commercial, indus19 trial, or any other such category of use, all changes in the rates or charges made, demanded, or received by any natural

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gas or oil company for or in connection with the transporta22 tion or sale of natural gas or oil shall be such as to decrease or 23 remove differences in such rates and charges based either on 24 quantity sold or distinctions between categories of use: