Opinion for the Court filed by Circuit Judge WALD.
WALD, Circuit Judge:
Petitioner North Carolina Utilities Commission ("NCUC") seeks to vacate, or in the alternative to reverse and remand for further findings, an order of the Federal Energy Regulatory Commission ("FERC" or "the Commission")
I. THE FACTS
Transco, a major interstate pipeline, purchases, transports and sells natural gas to distributors in 11 states, including North Carolina. At the time of the events which gave rise to this action, its principal sources of supply lay in the outer continental shelf, an area of small, fragmented reservoirs with relatively short productive lives. During the summer of 1974, it became obvious that Transco's supplies from these sources would fall far short of its original estimates, necessitating curtailments in planned deliveries to its customers. Accordingly, Transco issued its first curtailment plan in September, 1974, projecting a shortfall of supply over contract demand of 28 percent. Transco continued to revise its estimates of available gas supplies downwards in the fall, and contemporaneously issued a series of revisions to its original curtailment projections, increasing projected non-delivery by 30 Bcf.,
On January 8, 1975, the Federal Power Commission ("FPC")
In the spring of 1975, Transco again revised its deliverability projection, this time upward to include 18 Bcf. of gas which it had previously declared unavailable. On July 1, 1975, the FPC issued an Order Amending Prior Order and Broadening Scope of Investigation ("Investigatory Order II")
After an extensive investigation in which seven people spent six weeks in the field, the FPC staff submitted a report concluding that:
FPC Report on Investigation and Audit of Transco Producer-Suppliers ("Staff Report"), FPC Docket No. RP75-51 at 5-6; R. 4695-96; II J.A. 5-6. The Staff Report further concluded that there was no evidence of any "shut-in reserves being `withheld from the market' or that there are any wells capable of delivering in excess of current levels which can be legally or in some cases economically produced." Staff Report at 6; R. 4696; II J.A. 6 (footnote omitted). This report served as the cornerstone of the hearings which reconvened before an ALJ in February, 1976.
The ALJ issued his Initial Decision in June, 1977. See note 2 supra. The ALJ substantially adopted the factual conclusions of the Staff Report, which he quoted at length in his opinion. He thereby vindicated Transco's actions during the crisis — he found that the curtailments were necessary and that Transco had not attempted to manipulate gas supplies for its own profit — but did not go so far as to conclude that Transco or its suppliers were free from blame for the conditions which led up to the crisis. Indeed, the opinion notes that "there may have been some lack of diligence in the past in improving gas supplies and some bad management decisions on the timing of offshore repairs[.]"
NCUC and the FPC staff filed Exception Briefs to this initial decision, arguing that the judge should have recommended remedial actions.
II. THE ISSUES
NCUC argues before this court that the RP75-51 Order should be vacated or reversed and remanded for three reasons. First, NCUC contends that the Commission was required to dismiss the investigation as
Respondent FERC and the intervenors, Transco and Public Service Electric and Gas Company, et al. ("PSEG"),
In a post-argument memorandum to the court, intervenor Transco changed its position on the aggrievement issue, and argued for the first time that this court should review the merits of the Commission's order.
III. MOOTNESS
The threshold question before this court is whether the Commission's order was moot, and therefore should be vacated in accordance with the doctrine enunciated in A. L. Mechling Barge Lines, Inc. v. United States, 368 U.S. 324, 329-30, 82 S.Ct. 337, 340-41, 7 L.Ed.2d 317 (1961), and followed by this court in Tennessee Gas Pipeline Co. v. FERC, 606 F.2d 1373, 1382 (D.C.Cir.1979). Petitioner argues that both the factual and policy judgments of the ALJ were affirmed by the Commission not because they were correct, but because the investigation had been rendered unnecessary, or "mooted," by the "sharp change of circumstances ... between initiation of the investigation and its termination five years later," namely, the end of the "gas crisis" and Transco's need to curtail deliveries. Brief for Petitioner at 9-10. Respondent and intervenors argue that the end of the gas crisis did not end the utility of ascertaining its causes and possible preventive measures, and thus the investigation was not rendered moot. In its reply brief, the petitioner contends that this response "misapprehend[s]" the mootness argument: that while "[w]e have at no time contended that the Commission was required to vacate the proceeding as moot if a determination on the merits would serve some appropriate purpose ... [the Commission's]
Petitioner does not argue — in fact it contends just the opposite — that a determination of the factual issues involved in the investigation has been rendered unnecessary by the passage of time or that the factual findings reached by the ALJ and affirmed by the Commission have no collateral effects on the rights of the parties in other administrative and judicial actions. Rather, petitioner's argument seems to be that the Commission adopted the controversial findings for an improper reason — its reliance on the "footnote 5 data." Footnote 5 of the RP75-51 Order "take[s] official notice of Transco's vastly improved supply situation in the past several years as reflected in its Form 16 filings." RP75-51 Order at 2 n.5; R. 6983; I J.A. 241. Petitioner argues that this footnote was the Commission's only "independent rationale for its action" of "`adopt[ing] unchanged the Initial Decision,'" indicating thereby that instead of reviewing the ALJ's decision on its merits, the Commission affirmed it because "there was no point to continuation of the now-stale investigation of supply on the Transco system[.]" Brief for Petitioner at 13. If the Commission was not going to review the ALJ's decision on the merits, petitioner argues, the Initial Decision should have been vacated or the proceedings terminated as moot rather than affirmed precisely because the issues involved still had possible collateral consequences. In short, petitioner does not appear to dispute the continued existence of a controversy between itself and the Commission, but rather argues that the Commission decided the dispute incorrectly. This boils down to a "substantial evidence," rather than a "mootness," attack on the Commission's actions.
Because we read footnote 5, in the context of the whole record, as meaning something quite different from what petitioner contends, we do not find the Commission's partial reliance on it objectionable.
IV. STANDING
Section 19(b) of the NGA, 15 U.S.C. § 717r(b), confers standing to seek review of Commission action on "[a]ny party to a proceeding under this chapter aggrieved by an order issued by the Commission in such proceeding ...." The requirement of aggrievement "serves to distinguish a person with a direct stake in the outcome of a litigation ... from a person with a mere interest in the problem." United States v. Students Challenging Regulatory Agency Procedures (SCRAP), 412 U.S. 669, 689 n.14, 93 S.Ct. 2405, 2417 n.14, 37 L.Ed.2d 254 (1973). To show aggrievement, a plaintiff must allege facts sufficient to prove the existence of a "concrete, perceptible harm of a real, non-speculative nature[.]" Public Citizen v. Lockheed Aircraft Corp., 565 F.2d 708, 716 (D.C.Cir.1977). FERC argues that NCUC has not been aggrieved by the Commission's order at issue in this case because it does not "impose an obligation, deny a right, or fix some legal relationship as a consummation of the administrative process." Chicago & Southern Air Lines, Inc. v. Waterman Steamship Corp., 333 U.S. 103, 113, 68 S.Ct. 431, 437, 92 L.Ed. 568 (1948). NCUC alleges two sources of aggrievement: first, it claims it has been aggrieved by FERC's and Transco's use of the Commission's order adopting the findings of the underlying investigatory report in related administrative and judicial proceedings; secondly, it claims it has been aggrieved by the Commission's decision not to recommend remedial measures. We find both arguments unconvincing.
A. Petitioner's Aggrievement in Other Proceedings
Petitioner argues that it has been aggrieved by the utilization of the investigative order in three proceedings: (1) an appeal taken by Transco from a judgment obtained by CF Industries and Farmers Chemical Association, currently pending before the Fourth Circuit, (2) administrative compensation proceedings in FERC Docket No. RP72-99 ("RP72-99") and its associated investigation, FERC Docket No. TC79-6 ("TC79-6"), and (3) an administrative declaratory judgment order filed by Transco, FERC Docket No. TC79-8 ("TC79-8"). However, petitioner has failed to prove either that the order was used to its disadvantage in these proceedings, or if so used, it would be unable to attack the basis of any adverse finding in that proceeding. In the absence of such a showing, we find no aggrievement exists.
Petitioner's first claim of aggrievement arises from FERC's referral of the RP75-51 Order and investigative report to the Fourth Circuit for its use in the resolution of CF Industries, Inc. v. Transco.
Finally, NCUC claims it was aggrieved by FERC's reliance on the RP75-51 order in the declaratory judgment action filed by Transco as FERC Docket No. TC79-8. In the first place, FERC rendered its decision in this declaratory judgment action two months before it affirmed the ALJ's opinion in RP75-51;
In sum, NCUC has failed to show that it has been aggrieved or will be aggrieved by Commission or court reliance on the disputed order in related proceedings; moreover, this court accepts the Commission's assurances that NCUC can dispute any findings contained in the RP75-51 Order when and if they are utilized to NCUC's disadvantage in other Commission or court proceedings. Under these circumstances, we must hold that no aggrievement exists within the meaning of section 19(a) of the NGA.
B. Investigative Termination as Aggrievement
Petitioner's second theory of aggrievement relies on the failure of the RP75-51 Order to recommend remedial measures. It contends that this is the sort of "negative order" which gave rise to sufficient aggrievement to confer reviewability in City of Chicago v. United States, 396 U.S. 162, 90 S.Ct. 309, 24 L.Ed.2d 340 (1969). However, a "negative order" which "maintain[s]
In City of Chicago, the Court held reviewable an order of the Interstate Commerce Commission ("ICC") discontinuing an investigation into the termination of service by several passenger rail trains. In so doing, it cited the following passage from Rochester Telephone Corp. v. United States, 307 U.S. 125, 142-43, 59 S.Ct. 754, 763, 83 L.Ed. 1147 (1939):
396 U.S. at 166-67, 90 S.Ct. at 311-12. While the literal words of City of Chicago would seem to offer petitioner succor, a closer look at what was really going on in that case discloses that it dealt with an entirely different situation, necessitating an entirely different result.
At issue in City of Chicago was the reviewability of an order terminating an investigation under section 13a(1) of the Interstate Commerce Act ("ICA"). Under this section, the ICC had the option of investigating the discontinuance or change of passenger rail service for conformity with the statute's public convenience and necessity standard within 30 days of notification of said discontinuance or change. Though the decision to launch an investigation was undeniably unreviewable, 396 U.S. at 165, 90 S.Ct. at 311, section 14(1) of the ICA mandated that:
The Supreme Court interpreted section 14(1) to give affected parties a right to a reasoned decision on the merits of any investigation undertaken.
18 C.F.R. § 1b.7 (emphasis supplied). Precisely because any impact of a section 14 investigation is contingent on future administrative action, the Court in FPC v. Hope Natural Gas Co., 320 U.S. 591, 618-19, 64 S.Ct. 281, 295, 88 L.Ed. 333 (1944), held "certain findings as to the lawfulness of past rates which Hope had charged its interstate customers" made in the context of a section 14 investigation were not reviewable by the courts, but rather "a preliminary, interim step towards possible future action." Id. at 618-19, 64 S.Ct. at 295. See also United States v. Los Angeles & Salt Lake Railroad Co., 273 U.S. 299, 47 S.Ct. 413, 71 L.Ed. 651 (1927) (holding valuation of property after investigation pursuant to § 19a of the Valuation Act not reviewable because no aggrievement caused; fact that the valuation constitutes prima facie evidence in subsequent actions does not "prevent the report from being solely an exercise of the function of investigation"). These cases clearly demonstrate that the Court does not normally consider purely investigatory findings, not directly linked to agency enforcement proceedings,
Moreover, petitioner lacks standing because its claimed injury cannot be redressed by an order of this court reversing, remanding, or vacating the Commission's RP75-51 Order. The vitality of the requirement of redressability has been repeatedly reaffirmed by both the Supreme Court and this court. See Gladstone Realtors v. Village of Bellwood, 441 U.S. 91, 99 S.Ct. 1601, 60 L.Ed.2d 66 (1979); Duke Power Company v. Carolina Environmental Study Group, 438 U.S. 59, 98 S.Ct. 2620, 57 L.Ed.2d 595 (1978); Simon v. Eastern Kentucky Welfare Rights Organization, 426 U.S. 26, 96 S.Ct. 1917, 48 L.Ed.2d 450 (1976); Physicians' Education Network, Inc. v. Department of Health, Education and Welfare, 653 F.2d 621 (D.C.Cir.1981). Petitioner claims as its sole injury stemming from the termination of the investigation FERC's refusal to adopt "remedies designed both to alleviate the existing shortage and to prevent recurrence of a similar crisis in the event of another shortage." Reply Brief for Petitioner at 6. However, as detailed in Part V of this opinion, FERC is not required to adopt remedial measures even if it affirms an investigative report recommending them. The final decision as to what if any action should be taken with respect to an investigative report rests within the agency's discretion. We cannot find that it is substantially likely that the agency will implement remedial measures simply because we declare the RP75-51 Order moot, incorrect or incomplete. "Only speculative inferences
V. REVIEWABILITY
As petitioner noted in its reply brief, see Reply Brief for Petitioner at 5, respondent's reviewability argument is closely tied to its aggrievement argument. The fact that petitioner has not yet been aggrieved by the Commission's order affirming the Initial Decision is an indication that it is the sort of "nonfinal administrative order []" for which "[j]udicial intervention would be cumbersome and inappropriate." Papago Tribal Utility Authority v. FERC, 628 F.2d 235, 237, 239 (D.C.Cir.1980), cert. denied, 449 U.S. 1061, 101 S.Ct. 784, 66 L.Ed.2d 604 (1980). Moreover, as explained above, if a later proceeding does result in actual aggrievement, the opportunity to contest the order or findings will also arise. Therefore, resolution of the issues at this early investigative stage is not necessary to prevent unfairness at the later enforcement stage, and if allowed might lead to the consideration of many issues which need never be considered at all. For such reasons, courts traditionally refuse to rule on interim agency orders. See The National Conference of Catholic Bishops v. Smith, supra, 653 F.2d at 541-542. We see no reason to depart from this practice here.
Review of investigative findings unaccompanied by remedial measures would be similarly wasteful. On the one hand, investigative findings can be overruled or rendered impotent by future agency actions, and on the other, correcting improper investigative findings does not necessarily affect future agency decisions. The applicable statutes commit the decisions to prosecute
Finally, and perhaps most importantly, to the extent our review of investigative decisions did influence agency actions, we would be intruding into areas committed to agency discretion. As the Court made clear in Arrow Transportation Co. v. Southern Railway Co., 372 U.S. 658, 83 S.Ct. 984, 10 L.Ed.2d 52 (1963) and Southern Railway Co. v. Seaboard Allied Milling Corp., 442 U.S. 444, 99 S.Ct. 2388, 60 L.Ed.2d 1017 (1979), courts should not prejudge issues arising in preliminary agency actions which are relevant to a final agency decision committed either to agency discretion or its primary jurisdiction. Thus this court has held that we cannot review
CONCLUSION
In sum we do not agree with petitioner that the Commission's order should be dismissed as moot; we find no aggrievement at this time enabling petitioner to challenge the substantive basis of the Commission's decision to terminate the investigation and to decline to undertake remedial measures; and we do not think its order reviewable.
Appeal dismissed.
FootNotes
None of the parties in this action challenge FERC's assumption that the decision to begin an investigation under this section is committed to agency discretion. Indeed, it would be difficult to contend otherwise after the Court's decision in Southern Ry. Co. v. Seaboard Allied Milling Corp., 442 U.S. 444, 99 S.Ct. 2388, 60 L.Ed.2d 1017 (1979), which holds unreviewable the Interstate Commerce Commission's refusal to institute an investigation pursuant to a statute substantively identical to section 14, and this court's decision in General Motors Corp. v. FERC, 613 F.2d 939 (D.C.Cir.1979), holding unreviewable the Commission's refusal to institute an investigation pursuant to § 5(a) of the NGA, 15 U.S.C. § 717d(a).
Id. at 17. It also argues that the findings that Transco's new management reversed any previous lack of diligence in maintaining an adequate gas supply, and that its old management had not made "`any deliberate attempt to err on the low side in making and revising supply estimates'" were not supported by substantial evidence. Id. at 19-20. Because we dismiss this case for lack of jurisdiction, we express no opinion on the merits of these arguments.
614 F.2d at 34.
Moreover, it is not clear that the use of the report and order will hurt the plaintiffs in that suit, so that there may be no aggrievement to impute. The case is still pending. The potentiality of aggrievement is not as obvious as appears at first glance inasmuch as FERC transmitted with the documents a Report by the Federal Energy Commission on Referred Issues and Motion for Clarification of the Effect of the Court's Referral Order, reprinted in Memorandum Responding to Question at Oral Argument app. D, which explicitly sets out the limited relevance of its study to the case:
Id. at 6. The Commission acknowledged its inability "to develop and interpret the historical record of this case," and requested the court to relieve it of the burden of determining the "`facts and circumstances that resulted in the shortage of natural gas on Transcontinental Gas Pipe Line Corporation's interstate gas pipeline system that allegedly resulted the loss [sic] claimed by CF Industries, Inc. and Farmers Chemical Association, Inc.'" Id. at 7-11. The court acceded to this request in an order issued on February 17, 1981. Memorandum Responding to Question at Oral Argument at 5.
The FPC initially disapproved the settlement, and its decision was appealed to this court in Transco v. FPC, 562 F.2d 664 (D.C.Cir.1976), cert. denied, 436 U.S. 930, 98 S.Ct. 2830, 56 L.Ed.2d 775 (1978) ("Transco I"). The court there held that it could not determine the legality of the compensation scheme absent information "regarding the duration, shape and causation of the alleged shortage on the Transco system" because
562 F.2d at 669. Upon remand, the proceeding was assigned to the same ALJ who had presided over the RP75-51 investigation at issue in this case. He subsequently issued a report expressly incorporating his findings in RP75-51 "which are material" into TC79-6. Report to the Commission, FERC Docket No. TC79-6 (Aug. 16, 1979) at 5, reprinted in Memorandum Responding to Question at Oral Argument app. D.
Contrary to petitioner's allegation that this report "largely duplicated his earlier report," Supplemental Brief for Petitioner at 5, the TC79-6 report, which was issued after additional hearings had been held and information and briefs submitted, covered different issues and included more detailed statistics on other issues than did the RP75-51 report.
Following submission of this report, the Commission, in a sudden reversal, approved the challenged settlement. See Order on Compensation, FERC Docket Nos. RP72-99 & TC79-6 (Aug. 4, 1980), reprinted in Memorandum Responding to Question at Oral Argument app. D. NCUC did not challenge the TC79-6 report because it assumed the Commission's reversal rendered harmless any error. Supplemental Brief for Petitioner at 4 n.*. The Commission then changed positions again, granting rehearing on the compensation issue and ordering the case remanded for further hearings. See Order Granting Rehearing and Setting Compensation Issue for Hearing, FERC Docket Nos. RP72-99 & TC79-6 (Dec. 8, 1980), reprinted in Memorandum Responding to Question at Oral Argument app. A. The December 8 order did not vacate the August 4 approval of the TC79-6 report. Petitioner, alleging that the report therefore caused or could cause it harm in the renewed proceeding, filed for rehearing of the decision not to vacate, and upon its denial, for review of the challenged orders in this court. See Supplemental Brief for Petitioner at 4-5.
Because the Commission has not rendered a final decision on the compensation issue, it is as yet impossible to know whether, or how, NCUC has been injured by the Commission's adoption of the TC79-6 report, let alone its indirect reliance upon the RP75-51 report. Given the Commission's previous position on the compensation issue, there is at least a serious possibility that no injury will result.
(emphasis supplied). The court held that the Commission could not terminate proceedings instituted pursuant to section 4(a) after the ALJ had made findings of fact, reached conclusions, and rendered an initial decision, and exceptions to that decision had been argued to the Commission. (It specifically left open, however, the possibility that the agency had the discretion to terminate the proceedings at an earlier point. Minneapolis Gas Co. v. FPC, supra, 294 F.2d at 214.) Because the Commission was required to take specific enforcement action based on the outcome of this investigation, its decision to affirm or reject the ALJ's decision was reviewable. The court in Minneapolis Gas recognized that to allow the Commission to terminate its proceedings at so late a stage would have provided the agency with an easy method to escape review in cases where it found, after investigation, that rates were reasonable.
294 F.2d at 215. The same invitation to evasion of review does not exist here as findings in section 14 investigations impose no duties upon the Commission to act and are therefore generally unreviewable. See Part V infra.
15 U.S.C. § 717s (emphasis supplied).
15 U.S.C. § 7170 (emphasis supplied).
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