PENNZOIL CO. v. FEDERAL ENERGY REGULATORY COM'N

Nos. 79-1247, 79-1602.

645 F.2d 360 (1981)

PENNZOIL COMPANY, et al., Petitioners, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent.

United States Court of Appeals, Fifth Circuit.

As Modified on Denial of Rehearing August 21, 1981.


Attorney(s) appearing for the Case

Baker & Botts, Charles M. Darling, IV, Charles E. Suffling, R. Gordon Gooch, Washington, D. C., John M. Young, Pennzoil Co., Claudia J. Ramsland, Patricia A. Curran, Thomas R. McKnight, Houston, Tex., for Pennzoil Co., Ashland Exploration, Tenneco Oil Co., et al., Pogo Producing Co.

Jerome Nelson, Sol., J. Paul Douglas, Robert R. Nordhaus, Washington, D. C., for Federal Energy Regulatory Commission.

Frank X. Kelly, Gallagher, Boland, Meiburger & Brosnan, Washington, D. C., for Texas Gas Transmission Corp.

Judy M. Johnson, Larry R. Veselka, John D. Taurman, Vinson & Elkins, Houston, Tex., for Independent Producer respondents.

Harold L. Talisman, Washington, D. C., for Tennessee Gas Pipeline Co.

David C. Henri, Ray G. Groussman, Cloy D. Monzingo, Houston, Tex., Bernard A. Foster, III, Nancy J. Hubbard, Washington, D. C., for Getty Oil Co.

Marilyn O. Adamson, Tulsa, Okl., for Amerada Hess Corp.

W. B. Wagner, Jr., Houston, Tex., for Superior Oil Co.

Jeffrey G. Shrader, William T. Sperry, J. Clayton LaGrove, Tulsa, Okl., for Williams Exploration Co.

Neal Powers, Jr., Byron A. Thomas, Butler, Binion, Rice, Cook & Knapp, Arthur S. Berner, Houston, Tex., for Inexco Oil Co. and ECEE, Inc., et al.

Thomas G. Johnson, Jr. Houston, Tex., for Shell Oil Co. and Tenneco Oil Co., et al.

David M. Whitney, Houston, Tex., for Aminiol USA, Inc., et al.

Carolyn S. Hazel, Tom Burton, Houston, Tex., for Conoco, Inc.

Frederick Moring, Jennifer Waters, Dana Contratto, Washington, D. C., for Associated Gas Distributors.

C. J. Roberts, John L. Williford, Larry Pain, Bartlesville, Okl., for Phillips Petroleum Co.

Goldberg, Fieldman & Letham, P. C., Washington, D. C., for Memphis Light, Gas & Water Division.

Janice E. Kerr, J. Calvin Simpson, Lawrence Q. Garcia, San Francisco, Cal., for the People of State of Cal., et al.

Paul W. Fox, Washington, D. C., for Damson Oil Corp.

George J. Domas, New Orleans, La., for Terra Resources, Inc.

Robert D. Haworth, T. P. Hamill, R. C. Elmore, Houston, Tex., for Mobil Producing Texas & New Mexico, Inc., Mobil Oil Corp., Northern Natural Gas Producing Co. and Mobil Exploration & Producing Southeast, Inc.

Jeffrey D. Komarow, Washington, D. C., for State of Mich. and Michigan Public Service Commission.

Richard G. Harris, Oklahoma City, Okl., for Kerr-McGee Corp.

Peter W. Hanschen, Malcolm H. Furbush, Robert Ohlbach, Harry W. Long, Jr., San Francisco, Cal., for Pacific Gas and Electric Co.

Peter H. Schiff, Gen. Counsel, Albany, N. Y., Richard A. Solomon, Wilner & Scheiner, Dennis Lane, Washington, D. C., for Public Service Commission of State of N. Y.

Justin R. Wolf, George H. Rothschild, Jr., Washington, D. C., for Chevron U. S. A., Inc.

Lawrence E. Glenn, Robert W. Fuller, Gulf Oil Corp., Lauren Eaton, Houston, Tex., for Gulf Oil Corp.

Paul J. Broyles, John A. Ramsey, Karen A. Berndt, Houston, Tex., for Texaco, Inc.

C. Roger Hoffman, Martin N. Erck, D. W. Rasch, M. W. Cockrell, Jr., Houston, Tex., for Exxon Corp.

Dennis J. Roberts, II, Atty. Gen. of R. I., Providence, R. I., for Rhode Island Division of Public Utilities and Carriers.

William T. Benham, Chicago, Ill., for Amoco Production Co.

William A. Sackmann, Marathon Oil Co., Findlay, Ohio, for Marathon Oil Co.

William T. Miller, Stanley W. Balis, Miller, Balis & O'Neil, Washington, D. C., for Gas Consumers Group.

Robert R. Reis, Carmen Gonzalez, Tulsa, Okl., for Cities Service Co.

Paul W. Hicks, Dallas, Tex., for Placid Oil Co.

James P. Holland, Charleston, W. Va., for Columbia Gas Transmission Corp.

Becky McGee, James D. Olsen, Dallas, Tex., for Sun Oil Co. (Delaware).

Robert W. Henderson, Dallas, Tex., for Hunt Oil Co.

Robert G. Hardy, Thomas F. Ryan, Jr., Joseph A. Cannon, Washington, D. C., for Transcontinental Gas Pipe Line Corp.

Kenneth L. Riedman, Jr., Los Angeles, Cal., for Union Oil Co. of California.

Edward J. Kremer, Jr., David Aston, Dallas, Tex., for Atlantic Richfield Co.

Gary G. Sackett, Salt Lake City, Utah, for Mountain Fuel Supply Co.

Thomas D. Clarke, John S. Fick, Los Angeles, Cal., for Southern California Gas Co.

Before HENDERSON, ANDERSON and SAM D. JOHNSON, Circuit Judges.


SAM D. JOHNSON, Circuit Judge:

The continuing battle between producers and consumers over natural gas prices is once again before this Court. The issue in this controversy can be simply stated: May "area rate clauses"1 in existing interstate gas purchase contracts escalate the contract price to the maximum lawful price provided in the Natural Gas Policy Act of 1978? NGPA, 15 U.S.C.A. §§ 3301-3432. In the orders on review, the...

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