WILLIAMS NATURAL GAS CO. v. F.E.R.C.

Nos. 90-1193, 90-1255.

943 F.2d 1320 (1991)

WILLIAMS NATURAL GAS COMPANY, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Texas Gas Transmission Corporation, Amoco Production Company, Southern California Gas Company, Panhandle Eastern Pipe Line Company and Texas Eastern Transmission Corporation, Independent Oil and Gas Association of Pennsylvania, Union Pacific Resources Company, ARCO Oil and Gas Company, Division of Atlantic Richfield Company, Texaco, Inc., Pennzoil Exploration and Production Company and Pennzoil Gas Marketing Company, Enserch Exploration, Inc., National Association of Gas Consumers, Intervenors. ARCO OIL AND GAS COMPANY, DIVISION OF ATLANTIC RICHFIELD COMPANY, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Williams Natural Gas Company, Independent Oil and Gas Association of West Virginia and Pennsylvania Natural Gas Association, Panhandle Eastern Pipe Line Company and Texas Eastern Transmission Corporation, Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided September 6, 1991.


Attorney(s) appearing for the Case

Michael E. Small, with whom Robert G. Kern, Washington, D.C., and John H. Cary, Tulsa, Okl., were on the brief, for petitioner Williams Natural Gas Co. in 90-1193, and intervenor in 90-1255.

Kevin M. Sweeney, with whom Craig W. Hulvey, Frank H. Markle, Washington, D.C., and Charles F. Hosmer, Dallas, Tex., were on the brief, for petitioner ARCO Oil and Gas Co. in 90-1255, and intervenor in 90-1193.

Samuel Soopper, Atty., F.E.R.C., with whom William S. Scherman, Gen. Counsel, FERC, and Jerome M. Feit, Solicitor, FERC, Washington, D.C., were on the brief, for respondent in 90-1193 and 90-1255. Dwight C. Alperin, Atty., FERC, Washington, D.C., also entered an appearance for respondent.

Robert W. Perdue, Washington, D.C., for Texas Gas Transmission Corp., Charles F. Wheatley, Jr. and Philip B. Malter, Annapolis, Md., for The Nat. Ass'n of Gas Consumers, were on the joint brief, for intervenor in 90-1255.

James D. Senger, Katherine C. Zeitlin, and Jon L. Brunenkant, Washington, D.C., for Amoco Oil Co., David B. Robinson, Washington, D.C., and Kerry R. Brittain, Fort Worth, Tex., for Union Pacific Resources Co., John P. Beall, Houston, Tex., for Texaco, Inc., Richard E. Powers, Washington, D.C., and John B. Chapman, Houston, Tex., for Pennzoil Exploration and Production Co. and Pennzoil Gas Marketing Co., and Charles H. Shoneman and Randall S. Rich, Washington, D.C., for Independent Oil & Gas Ass'n of W. Va. and Independent Oil & Gas Ass'n of Pa., were on the joint brief, for intervenor in support of the respondent in 90-1193. Stephen A. Ellis, Chicago, Ill., and William H. Emerson, Tulsa, Okl., for Amoco Production Co. also entered appearances, for intervenors.

David L. Huard, Los Angeles, Cal., entered an appearance for intervenor Southern California Gas Co. in 90-1193.

Frank R. Lindh, Bruce W. Neely, Raymond N. Shibley, Washington, D.C., John S. Grube, and John C. Tweed, Houston, Tex., entered appearances for intervenors Panhandle Eastern Pipe Line Co. and Texas Eastern Transmission Corp. in 90-1193 and 90-1255.

Craig W. Hulvey, Kevin M. Sweeney, and Frank H. Markle, Washington, D.C., entered appearances for intervenor Enserch Exploration, Inc. in 90-1193.

Randall S. Rich and Charles H. Shoneman, Washington, D.C., entered appearances, for intervenor Independent Oil & Gas Ass'n of West Va. in 90-1255.

Before EDWARDS, D.H. GINSBURG and SENTELLE, Circuit Judges.


Opinion for the Court filed by Circuit Judge D.H. GINSBURG.

Dissenting opinion filed by Circuit Judge HARRY T. EDWARDS.

D.H. GINSBURG, Circuit Judge:

Under section 107 of the Natural Gas Policy Act, 15 U.S.C. § 3317, the Federal Energy Regulatory Commission may establish an especially high ceiling price for natural gas recovered from high-cost sources, in order to provide an incentive for the development of those sources. In 1980, the FERC exercised...

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