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, or if there was no contract price specified, the maximum lawful price.

Provides that following the expiration of the price freeze, the maximum lawful price for any first sale for which a ceiling 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 action, necessary including recission or modification of a contract, whenever it finds that: (1) any amount paid for any natural gas purchased is excessive due to fraud, abuse, or imprudence; or (2) any charge or rate collected by any natural gas company in connection with any sale or transportation of natural gas is unjust or unreasonable and such charge or rate is the result of a contract provision between a pipeline company and a producer which prevents the pipeline from responding to customer demands or other market forces.

Directs the Commission to devise and put into effect an incentive rate of return applicable to proceedings under the Act to stimulate the purchase of the maximum amount of lower cost gas which is consistent with gas availability and the need for a steady supply.