TEXAS EASTERN TRANSMISSION CORP. v. F.E.R.C.

Nos. 83-4390, 83-4162 and 85-4182.

769 F.2d 1053 (1985)

TEXAS EASTERN TRANSMISSION CORPORATION, et al., Petitioners, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent. ASSOCIATED GAS DISTRIBUTORS, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent. TRANSCONTINENTAL GAS PIPELINE CORPORATION, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent.

United States Court of Appeals, Fifth Circuit.

August 19, 1985.


Attorney(s) appearing for the Case

Andrews, Kurth, Campbell & Jones, Richard T. Boone, Washington, D.C.; R.V. Loftin, Jr. and James A. Porter, Houston, Tex., for Transcontinental Gas Pipe Line, Corp.

Kenneth L. Riedman, Lois Ellen Gold, Los Angeles, Cal., Jon L. Brunenkant, Washington, D.C., for Union Oil Co. of California.

Thomas W. Pounds, John S. Anderson, Donald R. Arnett, Porter K. Ryan and Brian L. Gennity, Houston, Tex., for United Gas Pipe Line Co.

Neal Powers, Jr., Everard A. Marseglia, Jr., Michael R. Waller and Douglas Corbett, Houston, Tex., for Zapata Exploration Co.

Merrill E. Fliederbaum and Karen A. Berndt, Houston, Tex., for Texaco, Inc.

J. Evans Attwell, James W. McCartney, Judy M. Johnson, Jack E. Earnest and Richard J. Kruse, Houston, Tex.; Carmen Chidester Farrell and David B. Sonosky, Tulsa, Okl., for Texas Eastern Transmission Corp. & Transwestern Pipeline Co.

Larry Pain, Jennifer A. Cates and W.B. Gaul, Bartlesville, Okl., for Phillips Petroleum Co.

Ronald D. Hurst and Paul W. Hicks, Dallas, Tex., for Placid Oil Co.

David E. Blabey, Gen. Counsel, Albany, N.Y., for Public Service Com'n.

Douglas D. Darold and Becky A. McGee, Dallas, Tex., for Sun Oil Co. (Delaware).

Phyllis Rainey, Richard G. Harris and James R. Schmitt, Houston, Tex.; Charles M. Darling, IV, Thomas J. Eastment and Stephen L. Teichler, Washington, D.C., for Tenneco Oil Co.

Terence J. Collins, Dale A. Wright and Barbara J. Klein, Washington, D.C., for Tennessee Gas Pipeline Co.

Donald R. Arnett, Porter K. Ryan, Brian L. Gennity, Thomas W. Pounds and John S. Anderson, Houston, Tex., for Sea Robin Pipeline Co.

Thomas G. Johnson and Robert A. Hasty, Jr., Houston, Tex., for Shell Oil Co.

Linda K. Browning, Birmingham, Ala., for Southern Natural Gas Co.

E.R. Island and Michael D. Gayda, Los Angeles, Cal., for Pacific Lighting Gas Supply & Southern California Gas Co.

Raymond N. Shibley, Brian D. O'Neill and L. Charles Landgraf, Washington, D.C.; Harry S. Welch and Robert B. Ford, Houston, Tex., for Panhandle Eastern Pipeline Co. and Trunkline Gas Co.

Patricia Curran, Houston, Tex.; Charles M. Darling, IV, Thomas J. Eastment and Stephen L. Teichler, Washington, D.C., for Pennzoil Co., et al.

Paul E. Goldstein, Joseph M. Wells, Karyl Arnold and Emmitt C. House, Chicago, Ill., and Robert D. Rosenberg, Lombard, Ill., for Natural Gas Pipeline Co. of America.

David B. Ward, Allan W. Anderson, Jr., Washington, D.C.; John B. Will, Omaha, Neb., and Lewis P. Chandler, Houston, Tex., for Northern Natural Gas Co.

William V. Allison, Winter Park, Fla.; Henry S. May, Jr., Vinson & Elkins, Houston, Tex., for Florida Gas Transmission Co.

Lawrence D. Garcia and Cloy D. Monzingo, Houston, Tex., for Getty Oil Co.

Walter L. Brignon and John E. Dickinson, Houston, Tex., for Gulf Oil Corp.

Lawrence V. Robertson, Jr. and John H. Cheatham, III, Washington, D.C., for Interstate Natural Gas Ass'n., Inc.

Johnny J. Akins, Oklahoma City, Okl., for Kerr-McGee Corp.

W.A. Sackmann, Findlay, Ohio, and Jon L. Brunenkant, Washington, D.C., for Marathon Oil Co.

Roy R. Robertson, Jr., Lombard, Ill., for Mississippi River Transmission.

Robert D. Haworth, Charles J. McClees, Jr. and Edgar K. Parks, Houston, Tex., for Mobil Oil Corp., et al.

Ernest J. Altgelt, III and Carolyn S. Hazel, Houston, Tex., for Conoco, Inc.

George A. Avery, Toni K. Allen and Susan D. Sawtelle, Washington, D.C., for Consumers Power Co.

Edward H. Forgotson and Jolen R. Eldridge, Washington, D.C., for Delhi Gas Pipeline Corp.

Ted G. White, Texasgulf, Inc., Houston, Tex.; Charles M. Darling, IV, Thomas J. Eastment, Stephen L. Teichler, Baker & Botts, Washington, D.C., for Elf Aquitane, Inc.

Edmunds Travis, Jr., Douglas W. Rasch and James G. Beste, Houston, Tex., for Exxon Corp.

Thomas E. Hirsch, III, John H. Conway, William H. Satterfield and Barbara J. Weller, Washington, D.C., for F.E.R.C.

Kirk E. Youngman, San Francisco, Cal., and James B. Atkin, Pillsbury, Madison & Sutro, Washington, D.C., for Chevron U.S.A., Inc.

Carmen C. Gonzalez and Robert S. Sheeler, Tulsa, Okl., for Cities Service Co.

P. Michael Koenig and William M. Lange, Colorado Springs, Colo., for Colorado Interstate Gas Co.

Glen L. Kettering and Stephen J. Small, Charleston, W.Va., Charles M. Darling, IV, Thomas J. Eastment and Stephen L. Teichler, Washington, D.C., for Columbia Gas Transmission Corp.

Frederick Moring, Jennifer N. Waters, Richard McMillan, Jr., Herbert J. Martin and Joseph M. Oliver, Jr., Washington, D.C., for Associated Gas Distributors.

Arthur J. Wright, Dallas, Tex., for Atlantic Richfield Co.

Roscoe C. Elmore, Houston, Tex., for Cabot Corp.

William T. Benham, Chicago, Ill.; Carroll L. Gilliam and Jon L. Brunenkant, Washington, D.C., for Amoco Production Co.

William W. Brackett, Daniel F. Collins and T.O. Vogel, Washington, D.C., for ANR Pipeline Co.

Arthur J. Wright, Div. of Atlantic Richfield Co., Dallas, Tex., for Arco Oil & Gas Co.

L. Eugene Dickinson, Ashland, Ky., for Ashland Exploration, Inc.

Before GARZA, JOHNSON and DAVIS, Circuit Judges.


GARZA, Circuit Judge:

I.

These consolidated appeals1 involve the Federal Energy Regulatory Commission's ("Commission") handling of three rather distinct issues under the Natural Gas Policy Act of 1978, 15 U.S.C. Section 3301 et seq. ("NGPA"). First, the Commission issued a number of regulations outlining when a first seller of natural gas can recover certain production-related costs under Section 110(a)(2) over and above...

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