A term adopted under the NGPA to describe certain sales of natural gas; Le., any sale of any volume of natural gas (i) to any interstate pipeline or intrastate pipeline; (ii) to any local distribution company; (iii) to any person for use by such person; (iv) which precedes any sale described in clauses (i), (ii), or (iii); and (v) any sale which precedes or follows any sale described in clauses (i), (ii), (iii), or (iv) and is defined by the FERC as a first sale in order to prevent circumvention of any maximum lawful price established under the NGPA. The NGPA excludes from the term “first sale” the sale of any volume of natural gas by any interstate or intrastate pipeline, local distribution company, or any affiliate thereof, unless such sale is attributable to volumes of natural gas produced by such affiliates thereof.
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