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

Nos. 91-1136, 91-1172.

966 F.2d 1506 (1992)

TEXAS EASTERN TRANSMISSION CORPORATION, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Algonquin Gas Transmission Company; Associated Natural Gas Company a Division of Arkansas Western Gas Company; Baltimore Gas and Electric Company; Bay State Gas Company, et al.; Brooklyn Union Gas Company; Carnegie Natural Gas Company; Central Hudson Gas & Electric Corporation; CNG Transmission Corporation; Columbia Gas Transmission Corporation; Equitable Gas Company, a Division of Equitable Resources, Inc.; Equitrans, Inc.; Indiana Gas Company, Inc.; Long Island Lighting Company; Municipal Defense Group; National Fuel Gas Supply Corp.; New Jersey Natural Gas Company; Orange & Rockland Utilities, Inc.; Pennsylvania Public Utility Comm.; Public Service Commission of New York; Public Service Electric & Gas Co., Intervenors. BAY STATE GAS COMPANY, et al., Petitioners, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Associated Natural Gas Company; Brooklyn Union Gas Company; Algonquin Gas Transmission Co.; Columbia Gas Transmission Corp.; Municipal Defense Group; New Jersey Natural Gas Company; Texas Eastern Trans. Corporation; Equitrans, Inc.; Carnegie Natural Gas Company; Baltimore Gas and Electric Company; National Fuel Gas Supply Corp.; Central Hudson Gas & Electric Corp.; Long Island Lighting Company; Orange and Rockland Utilities, Inc., Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided June 26, 1992.

Rehearing Denied August 28, 1992.


Attorney(s) appearing for the Case

Judy M. Johnson with whom Henry S. May, Jr., John E. Kennedy, D. Virginia Smith and F. Nan Wagoner for Texas Eastern Transmission Corp., Gearold L. Knowles with whom Edward J. Finn and Shaheda Sultan, for Bay State Gas Co., et al., and J. Richard Tiano, for Southern Connecticut Gas Co. were on the joint brief, for petitioners in Nos. 91-1136 and 91-1172 and intervenors in Nos. 91-1172 and 91-1136 respectively.

Joel M. Cockrell, Atty., F.E.R.C., with whom William S. Scherman, Gen. Counsel, Jerome M. Feit, Sol. and Joseph S. Davies, Deputy Sol. were on the brief, for respondent in Nos. 91-1136 and 91-1172.

Timothy N. Black, with whom John H. Pickering, Gary D. Wilson, Susan D. McAndrew, Giles D.H. Snyder, and Stephen J. Small, for Columbia Gas Transmission, William H. Roberts, for Equitable Gas Co., Karol Lyn Newman and Michael G. Lepre, for Carnegie Natural Gas Co., and Robert S. Fleishman and Andrew P. Mosier, Jr. for Baltimore Gas and Elec. Co. were on the joint brief, for intervenors in support of respondents in both cases. Mark D. Clark and Mark A. MacDougall also entered appearances, for intervenors.

Michael W. Hall, Roderick D. Strickland, and Kenneth J. Maloney, for Brooklyn Union Gas Co., O. Julia Weller, for Long Island Lighting Co., George L. Weber, for National Fuel Gas Supply Corp., Ronald E. Christian and John R. Talley, for Indiana Gas Company, Inc., Victor A. Roque and Edward B. Myers, for Orange & Rockland Utilities, Inc., Stanley W. Balis, Mark C. Darrell for Municipal Defense Group, Rebecca S. Haney for Algonquin Gas Transmission Co., and Joseph M. Oliver, Jr., for New Jersey Natural Gas Co. were on the joint brief, for intervenors in both cases. Kenneth L. Glick, James F. Mattia, Jr., and Gerard A. Maher also entered appearances, for intervenors.

Frederick J. Killion, and Donald J. Dankner entered appearances for intervenor Central Hudson Gas & Elec. Co. in Nos. 91-1136 and 91-1172.

Kenneth D. Brown entered an appearance, for Public Service Electric and Gas Co. in No. 91-1136.

Gary E. Guy and Frank H. Markle entered appearances, for intervenor Equitrans, Inc. in Nos. 91-1136 and 91-1172.

David D'Alessandro and Richard A. Solomon entered appearances, for intervenor The Public Service Com'n of New York in No. 91-1136.

Steven A. Weiler and Don S. Smith entered appearances, for intervenor Associated Natural Gas Co. in Nos. 91-1136 and 91-1172.

Lawrence F. Barth, Veronica A. Smith and John F. Povilaitis entered appearances, for intervenor Pennsylvania Public Utility Com'n in No. 91-1136.

James L. Blasiak, Mark G. Magnuson, Kevin J. Lipson, and Charles C. Thebaud entered appearances, for intervenor CNG Transmission Corp. in No. 91-1136.

Before: SILBERMAN, BUCKLEY and WILLIAMS, Circuit Judges.


Opinion for the Court filed by Circuit Judge STEPHEN F. WILLIAMS.

STEPHEN F. WILLIAMS, Circuit Judge:

As followers of the take-or-pay saga well know, interstate natural gas pipelines incurred huge take-or-pay liabilities in the mid-1980s. The liabilities arose because the pipelines' gas purchase contracts required them to buy gas at prices that, because of changed market conditions, they could not pass forward to their customers at the times when they were...

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