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1 Provided, That progressive rate structures may be maintained 2 with the approval of the Commission. A progressive rate 3 structure is one under which the rate or charge per unit of 4 natural gas or oil, within any category of use, increases 5 progressively on the basis of the quantity consumed, used, 6 or purchased.

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[WORKING PAPER NO. 21

93D CONGRESS

2D SESSION

S.

MARCH 11, 1974

Mr.

IN THE SENATE OF THE UNITED STATES

MARCH

1974

introduced the following bill; which was read twice and referred to the Committee on the District of Columbia

A BILL

To regulate commerce and amend the Natural Gas Act so as to provide increased supplies of oil, natural gas, and substitutes therefor at reasonable prices to the consumer, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Consumer Energy Act 4 of 1974".

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TITLE I-OIL AND GAS REGULATORY REFORM

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GENERAL PROVISIONS

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SEC. 101. The Natural Gas Act (15 U.S.C. 717 et seq.)

8 is amended by (a) striking out section 24 thereof (15

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1 U.S.C. 717w); (b) redesignating sections 1 through 23

2 thereof (15 U.S.C.

717-717v) as sections 2 through 24

3 thereof; and (c) inserting therein the following new

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"SECTION 1. This Act may be cited as the 'Federal Oil

7 and Gas Act'.".

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SEC. 102. The Federal Oil and Gas Act, as amended by 9 this Act (15 U.S.C. 717 et seq.), is amended with the excep10 tion of sections 4 and 8 thereof (15 U.S.C. 717f), by deleting 11 the terms "natural gas" and "natural-gas" wherever the same 12 shall appear and by inserting in lieu thereof "oil or gas". SEC. 103. Section 2 of the Federal Oil and Gas Act, as 14 amended by this Act (15 U.S.C. 717), is amended to read

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"DECLARATION OF POLICY

"SEC. 2. (a) The Congress declares that the business of

transporting and selling oil, natural gas, and substitutes there19 for is affected with a public interest, and that Federal regu20 lation in matters relating to the transportation and sale of 21 oil or gas in commerce is necessary in the public interest.

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"(b) The Congress finds and declares that oil and

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"(1) located, developed, and produced, often in

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association with each other, by the application of similar

techniques;

"(2) used or usable for the same or similar purposes

and are capable of being substitutes for each other for many purposes, such as the market for one affects the market of the other;

"(3) in great demand to meet the Nation's growing energy needs while proved domestic reserves and production of both are inadequate to meet such needs; and "(4) located primarily by independent producers and are produced primarily by oil or gas companies that are not independent producers.

13 It is therefore declared to be the policy of the Congress in 14 this Act to apply uniform regulation to oil, natural gas, and 15 substitutes therefor in order to assure adequate supplies at 16 reasonable prices to the consumer.

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"(c) This Act shall apply to the transportation or sale of oil or gas in or affecting commerce by any oil or gas com

pany engaged in such transportation or sale only as specifi

cally provided in this Act.

SEC. 104. Section 3 of the Federal Oil and Gas Act, as

22 amended by this Act (15 U.S.C. 717a), is amended to

23 read as follows:

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"DEFINITIONS

"SEC. 3. As used in this Act, unless the context other

3 wise requires, the term

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"(1) 'affiliate' means a person controlled by or controlling or under or subject to common control with respect to any other person;

"(2) 'commerce' means commerce among the several States or with foreign nations or in any State or between any State, the United States, or any foreign nation;

"(3) 'Commission' means the Federal Power Commission;

"(4) 'Commissioner' means a member of the Commission;

"(5) 'control' means actual or legal power or

16 influence over another person, directly or indirectly,

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arising through direct, indirect, or interlocking owner

ship of capital stock, interlocking directorates or officers, contractual relations, agency agreements, or leasing arrangements where the result or consequence is used to affect or influence persons engaged in the transportation and sale of oil or gas in commerce;

"(6) foreign place' means any location or place anywhere in the world other than in the United States;

"(7) 'includes' or 'including' should be read as if

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