Natural gas regulation, deregulation, and contracts

Journal Article · Fri Jan 01 04:00:00 EST 1982 · Public Land Resour. Law Dig.; (United States)

DOI:https://doi.org/10.2307/1072705· OSTI ID:6411079

Pierce, Jr, R J

This article shows the ways in which regulation, phased deregulation, and contract provisions can interact to produce anomalous results. Regulation has influenced the process of contracting and the nature of bargains struck. Partial deregulation will change in unanticipated ways the nature of the risks and uncertainties that contracting parties foresaw and allocated in their agreements. This sequence can produce results that are both inequitable and inefficient. The article begins with a brief history of gas producer price regulation and a discussion of the adverse effects of regulation on aggregate social welfare. Then, it discusses the current opeeration of the natural gas industry and the long-term contracts that govern the relationships between suppliers and pipelines. Next, the article discusses the deregulation scheme enacted in the Natural Gas Policy Act of 1978, and the likely effects of the interaction of this scheme with existing long-term supply contracts. The article explores several remedies that would avoid these adverse effects: voluntary contracting behavior, application of contract law doctrines, and several statutory solutions. Finally, the article draws general inferences about the relationship between regulation, deregulation, and long-term contracts. 171 references.

• Research Organization: Tulane Univ., New Orleans, LA
• OSTI ID: 6411079
• Journal Information: Public Land Resour. Law Dig.; (United States), Journal Name: Public Land Resour. Law Dig.; (United States) Vol. 19:2; ISSN PRLDD
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
031000* -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
CONTRACTS
DEREGULATION
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
LEGAL ASPECTS
NATURAL GAS
PRICING REGULATIONS
REGULATIONS