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TENNECO OIL CO. v. FEDERAL ENERGY ADMINISTRATION

No. 5-40.

613 F.2d 298 (1979)

TENNECO OIL COMPANY, Plaintiff-Appellee, v. FEDERAL ENERGY ADMINISTRATION and John F. O'Leary, Administrator, Defendants-Appellants.

Temporary Emergency Court of Appeals.

Decided December 3, 1979.

Rehearing Denied January 18, 1980.

Attorney(s) appearing for the Case

Christopher M. Was, Dept. of Energy, Washington, D. C., with whom Barbara Allen Babcock, Asst. Atty. Gen., C. Max Vassanelli and Caroline C. Mueller, Dept. of Justice, and Arthur E. Gowran, Dept. of Energy, Washington, D. C. were on the brief for defendants-appellants.

John P. Mathis, Baker & Botts, Washington, D. C., with whom Charles M. Darling, IV, and Kirk K. Van Tine, Washington, D. C., David M. Lacey, Baker & Botts, Houston, Tex., and Ralph J. Maynard, Alfred B. Smith, Jr., Tenneco Oil Company, Houston, Tex., were on the brief for plaintiff-appellee.

Before INGRAHAM, MORGAN and GEWIN, Judges.

LEWIS R. MORGAN, Judge.

The central issue in this case is whether the use by Tenneco of its own oil on its own oil producing properties was a "sale" under the terms of the petroleum price control regulations. The district court found, and we agree, that the Federal Energy Administration's (FEA)1 application of the price control regulations to the facts in this case was erroneous.

I. THE FACTS

The regulations in question...

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