Natural Gas Wellhead Decontrol Act of 1989
PL 101-60 (H.R.1722), enacted 07/26/1989

PUBLIC LAW 101-60—JULY 26, 1989 
103 STAT. 157 
Public Law 101-60 
101st Congress 
An Act 
To amend the Natural Gas Policy Act of 1978 to eliminate wellhead price and 
J^^y 26 1989 
nonprice controls on the first sale of natural gas, and to make technical and 
—rWR 17991— 
conforming amendments to such Act. 
Irl.K. 
J 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Natural Gas 
Wellhead 
SECTION 1. SHORT TITLE. 
Decontrol 
Act of 1989. 
This Act may be cited as the "Natural Gas Wellhead Decontrol 
15 USC 3301 
Act of 1989". 
note. 
SEC. 2. DEREGULATION OF FIRST SALES OF NATURAL GAS. 
(a) INTERIM EUMINATION OF CERTAIN MAXIMUM LAWFUL PRICES.— 
Section 121 of the Natural Gas Policy Act of 1978 (15 U.S.C. 3331) is 
amended by adding at the end the following new subsection: 
"(f) ADDITIONAL DECONTROL.—The provisions of subtitle A respect-
ing the maximum lawful price for a first sale of natural gas shall 
cease to apply to natural gas described in paragraphs (1), (2), (3), and 
(4), as follows: 
"(1) EXPIRED, TERMINATED, OR POST-ENACTMENT CONTRACTS.— 
In the case of natural gas to which no first sale contract applies 
on the date of enactment of the Natural Gas Wellhead Decon-
trol Act of 1989, subtitle A shall not apply to any first sale of 
such natural gas delivered on or after the first day after such 
date of enactment. 
"(2) EXPIRING OR TERMINATING CONTRACTS.—In the case of 
natural gas to which a first sale contract applies on the date of 
enactment of the Natural Gas Wellhead Decontrol Act of 1989, 
but to which such contract ceases to apply after such date of 
enactment, subtitle A shall not apply to any first sale of such 
natural gas delivered after such contract ceases to apply. 
"(3) CERTAIN RENEGOTIATED CONTRACTS.—In the case of natu-
ral g£is to which a first sale contract applies on the date of 
enactment of the Natural Gas Wellhead Decontrol Act of 1989, 
where the parties have expressly agreed in writing after March 
23, 1989, that all or part of the gas sold under such contract 
shall not be subject to any maximum lawful price under subtitle 
A after a specified date, subtitle A shall not apply to any first 
sale of the natural gas subject to such express agreement deliv-
ered on or after the date so specified, except that subtitle A 
shall not cease to apply to any such natural gas pursuant to this 
paragraph before the date of enactment of the Natural Gas 
Wellhead Decontrol Act of 1989. 
"(4) NEWLY SPUDDED WELLS.—In the case of natural gas pro-
duced from a well the surface drilling of which began after the 
date of enactment of the Natural Gas Wellhead Decontrol Act 
of 1989, subtitle A shall not apply to any first sale of such 
natural gas delivered on or after May 15,1991. 
103 STAT. 158 
PUBLIC LAW 101-60—JULY 26, 1989 
For purposes of this subsection, a first sale contract applies to 
natural gas when the seller has a contractual obligation to deliver 
such natural gas under such contract,". 
Effective date. 
(b) PERMANENT ELIMINATION OF WELLHEAD P R I C E CONTROLS.— 
Title I of the Natural Gas Policy Act of 1978 (15 U.S.C. 3311-3333) is 
repealed, effective on January 1,1993. 
SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) AMENDMENTS EFFECTIVE UPON ENACTMENT.—The Natural Gas 
Policy Act of 1978 is amended as follows: 
(1) The table of contents in section 1(b) (15 U.S.C. 3301 note) is 
amended— 
(A) in the item relating to section 315, by striking "Con-
tract duration; filing" and inserting in lieu thereof 
"Filing"; and 
(B) by striking the item relating to section 507. 
(2) Section 315 (15 U.S.C. 3375) is amended— 
(A) in the section heading, by striking "CONTRACT DURA-
TION;"; and 
(B) by striking "(a) CONTRACT DURATION.—" and all that 
follows through "(b) FIUNG OF CONTRACTS AND ANCILLARY 
(3) Section 502(d) (15 U.S.C. 3412(d)) is repealed. 
(4) Section 504(b) (15 U.S.C. 3414(b)) is amended— 
(A) in paragraph (1), by striking "paragraphs (2) and (3)" 
and inserting in lieu thereof "paragraph (2)"; 
(B) by striking paragraph (3); and 
(C) in paragraph (4), by striking "paragraph (1), (2), or (3)" 
and inserting in lieu thereof "paragraph (1) or (2)". 
(5) Section 506(d) (15 U.S.C. 3416(d)) is repealed. 
(6) Section 507 (15 U.S.C. 3417) is repealed. 
(7) Section 601 (15 U.S.C. 3431) is amended— 
(A) by amending subsection (aXlXE) to read as follows: 
"(E) CERTAIN ADDITIONAL NATURAL GAS.—For purposes of 
section 1(b) of the Natural Gas Act, the provisions of the 
Natural Gas Act and the jurisdiction of the Clommission 
under such Act shall not apply solely by reason of any first 
sale of natural gas which is committed or dedicated to 
interstate commerce as of the day before the date of the 
enactment of this Act and which is not subject to a maxi-
mum lawful price under subtitle A of title I by re£ison of 
section 121(f), effective as of the date such gas ceases to be 
subject to such maximum lawful price."; and 
(B) in subsection (cX2), by striking "purchase of natural 
gas" and all that follows through "under section 202)," and 
inserting in lieu thereof "purchase of natural g£is if, under 
subsection (b) of this section, such amount is deemed to be 
just and reasonable for purposes of sections 4 and 5 of such 
Act,". 
(b) AMENDMENTS EFFECTIVE ON JANUARY 1, 1993.—Effective on 
January 1, 1993, the Natural Gas Policy Act of 1978 is amended as 
follows: 
(1) The table of contents in section 1(b) (15 U.S.C. 3301 note) is 
amended by striking the items relating to title I and section 503. 
(2) Section 312(c) (15 U.S.C. 3372(c)) is amended by striking 
"any natural gas" and all that follows through "(3)" and insert-
ing in lieu thereof "any natural gas". 
PUBLIC LAW 101-60—JULY 26, 1989 
103 STAT. 159 
(3) Section 313 (15 U.S.C. 3373) is amended by inserting ", as 
such section was in effect on January 1, 1989" after "section 
107(c)" both places it appears, and after "section 105(b)(3)(B)" 
both places it appears. 
(4) Section 501(c) (15 U.S.C. 3411(c)) is repealed. 
(5) Section 503 (15 U.S.C. 3413) is repealed. 
(6) Section 504(a) (15 U.S.C. 3414(a)) is amended by striking 
"person" and all that follows through "to otherwise" and insert-
ing in lieu thereof "person to". 
(7) Section 601 (15 U.S.C. 3431) is amended— 
(A) by amending subsection (a)(1)(A) to read as follows: 
"(A) APPLICATION T
O FIRST SALES.—For purposes of section 
Kb) of the Natural Gas Act, the provisions of the Natural 
Gas Act and the jurisdiction of the Commission under such 
Act shall not apply to any natural gas solely by reason of 
any first sale of such natural gas."; 
(B) by striking subparagraphs (B) and (E) of subsection 
(a)(1); 
(C) by redesignating subparagraphs (C) and (D) of subsec-
tion (a)(1) as subparagraphs (B) and (C), respectively; 
(D) in subsection (a)(1)(C) (as redesignated by subpara-
graph (C) of this paragraph), by striking "subparagraph (A), 
(B), or (C)" and inserting in lieu thereof "subparagraph (A) 
or(B)"; 
(E) by amending subsection (b)(1)(A) to read as follows: 
"(A) FIRST SALES.—Except as otherwise provided in this 
subsection, for purposes of sections 4 and 5 of the Natural 
Gas Act, any amount paid in any first sale of natural gas 
shall be deemed to be just and reasonable."; and 
(F) in subsection (b)(lXD), by striking "if such amount 
does not exceed the applicable maximum lawful price estab-
lished under title I of this Act". 
(8) Section 602(a) (15 U.S.C. 3432(a)) is amended— 
(A) by striking "AUTHORITY TO PRESCRIBE LOWER" and 
inserting in lieu thereof "AUTHORITY TO PRESCRIBE"; and 
(B) by striking "which does not exceed the applicable 
maximum lawful price, if any, under title I of this Act". 
Approved July 26, 1989. 
LEGISLATIVE HISTORY—H.R. 1722 (S. 783): 
HOUSE REPORTS: No. 101-29 (Comm. on Energy and Commerce) and No. 101-100 
(C!omm. of Conference). 
SENATE REPORTS: No. 101-38 accompanying S. 783 (Comm. on Energy and Natural 
Resources) and No. 101-39 (Comm. on Energy and Natural 
Resources). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
Apr. 17, considered and passed House. 
June 8, 9, 13, 14, considered and passed Senate, amended. 
June 22, Senate agreed to conference report. 
July 12, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 25 (1989): 
July 26, Presidential remarks and statement.