A bill to amend the Natural Gas Policy Act of 1978, and for other purposes.

Amends the Natural Gas Policy Act of 1978 to provide that the maximum lawful price applicable to any first sale of any natural gas in effect on October 1, 1982, shall continue to be the maximum lawful price applicable to such sale for the period starting October 1, 1982, through January 1, 1985. Permits increases (but not above the maximum lawful price in effect on October 1, 1982) on the first sale of natural gas which has a price lower than the applicable maximum lawful price on October 1, 1982, but limits any such increase to the lesser of: (1) the rate provided in the sales contract; or (2) the annual inflation adjustment factor.

Provides that the maximum lawful price for the period beginning October 1, 1982, and ending January 1, 1985, for any first sale of natural gas from a well the surface drilling of which began by October 1, 1982, and for which there was no applicable maximum lawful price on October 1, 1982, shall be the contract price specified for deliveries of such natural gas on October 1, 1982.

Provides that following the expiration of the price freeze imposed by this Act, the maximum lawful price is specified on October 1, 1982, shall increase from the October 1, 1982, level at the rate specified for that category of natural gas.

Extends for two years the expiration date of: (1) price controls; and (2) standby authority.

Authorizes the Federal Energy Regulatory Commission to take such action as is necessary, including rescission or modification of a contract, whenever it finds that any gas sales or purchase contract contains a provision determined to prevent the purchaser from responding to customer demands or market forces by requiring the purchaser to pay for a minimum contract quantity of gas whether or not such gas is taken.

Directs the Commission to devise and put into effect an incentive procedure to determine the appropriate rate of return that a pipeline company may earn under the Natural Gas Act.