EXXON CORP. v. UNITED STATES DEPT. OF ENERGY

Nos. 5-104, 5-105, 5-107, and CA-3-75-0836-W.

752 F.2d 650 (1984)

EXXON CORPORATION, and Texaco, Inc., Plaintiffs-Appellants and Cross Appellees, v. UNITED STATES DEPARTMENT OF ENERGY, and Donald P. Hodel, Secretary of Energy, Defendants-Appellees and Cross Appellants.

Temporary Emergency Court of Appeals.

Decided December 17, 1984.


Attorney(s) appearing for the Case

Michael J. Henke, Washington, D.C., with whom C. Michael Buxton and Thomas A. Stout, Jr., Vinson & Elkins, Washington, D.C., and Stephen H. Bard, White Plains, N.Y., of Counsel, Texaco Inc., were on the brief for plaintiff-appellant and cross appellee Texaco Inc.

M.W. Parse, Jr., Houston, Tex., with whom A. Frank Koury, Fulbright & Jaworski, Houston, Tex., Keith A. Jones, Fulbright & Jaworski, Washington, D.C., and W.J. McAnelly, Jr. and Edward de la Garza, Exxon Corporation, Houston, Tex., were on the brief for plaintiff-appellant and cross appellee Exxon Corp.

Don W. Crockett, with Larry P. Ellsworth, John L. Gurney and Robert J. Wehrle-Einhon, Dept. of Energy, Washington, D.C., and Richard K. Willard, Acting Asst. Atty. Gen., Dept. of Justice, Washington, D.C., were on the brief for defendants-appellees and cross appellants Dept. of Energy.

Before CHRISTENSEN, WILLIAM H. BECKER and BROWN, Judges.


MEMORANDUM DECISION

CHRISTENSEN, Judge.

THE PROBLEM

A natural gas stream as it is produced from a gas reservoir is a mixture of natural gas liquids (NGLs)1 and methane. When a producer extracts NGLs from this "wet" gas stream instead of marketing it as such, volumetric (Mcf), and thermal (Btu) values of the stream are reduced. "Subpart K" and "Subpart E" (as later harmonized...

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