A bill to exempt sales by small producers of certain natural gas from regulation of the Federal Power Commission and from the requirement of certificates of public convenience and necessity of section 7(c) of the Natural Gas Act.

Stipulates that sales of natural gas by small, independent producers shall be exempt from regulation by the Federal Power Commission. Requires that prices of such sales be at a level which adequately compensates the seller for current costs, including an adequate return on investment.

Defines the term "small producer" to include independent producers (1) not affiliated with natural gas pipeline companies or larger producers; (2) whose total sales do not exceed 10 million Mcf per year; and (3) whose average production per well does not exceed 100 Mcf per day on an annual basis.