Natural Gas Reform Act

Natural Gas Reform Act - Amends the Natural Gas Act to redefine the coverage of such Act to include all aspects of the production, supply, transportation, distribution, and sale of natural gas, except in the case of sales and distribution to ultimate consumers by local distributors. Stipulates that natural gas in liquid or any other form shall be covered by the Act.

Requires all natural gas companies to furnish monthly reports to the Commission on current and anticipated future natural gas supplies. Imposes criminal penalties for failure to furnish such information in good faith.

Prohibits natural gas companies from withholding available supplies of natural gas whenever a demand for such natural gas exists. Imposes criminal penalties for withholding such natural gas, except where specifically authorized by the Commission. Authorizes the President to seize such withheld or unsold natural gas upon ten days' notice and order its distribution as the public interest requires.

Authorizes the President to seize and reallocate any reserves of natural gas upon ten days' notice in order to alleviate natural gas shortages.

Directs the Federal Power Commission to establish priorities for the use of natural gas. Directs the Commission, in the exercise of its pricing and rate-making authority to grant high priority to the welfare of residential and small business consumers of natural gas, and to promote the conservation of natural gas through graduated price and rate schedules designed to discourage wasteful consumption.

Requires the Commission to complete processing of applications for certificates of public convenience and necessity filed by natural gas companies within a period of six months, except where the President specifies an additional period of time to complete such processing.

Authorizes the President to enter into agreements with natural gas companies to provide Federal reimbursement for amounts not to exceed one-half of any net losses incurred in natural gas exploration and drilling expenses, provided good faith efforts to produces such natural gas or other petroleum products have proved unsuccessful.