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TENN. GAS PIPELINE v. URBACH

96 N.Y.2d 124 (2001)

750 N.E.2d 52

726 N.Y.S.2d 350

TENNESSEE GAS PIPELINE COMPANY, Appellant, v. MICHAEL H. URBACH, as Commissioner of the Department of Taxation and Finance of the State of New York, et al., Respondents.

Court of Appeals of the State of New York.

Decided May 1, 2001.

Attorney(s) appearing for the Case

Hodgson, Russ, Andrews, Woods & Goodyear, L. L. P., Albany (Christopher L. Doyle, Richard L. Weisz and Timothy P. Noonan of counsel), for appellant.

Eliot Spitzer, Attorney General, Albany (Andrew D. Bing, Preeta D. Bansal, Daniel Smirlock and Peter H. Schiff of counsel), for respondents.

Chief Judge KAYE and Judges SMITH, LEVINE, CIPARICK, ROSENBLATT and GRAFFEO concur.

OPINION OF THE COURT

WESLEY, J.

When Congress passed the Natural Gas Policy Act of 1978 (see, 15 USC § 3301 et seq.), it set in motion the deregulation of the natural gas industry. At that time, interstate pipeline companies enjoyed market control of prices as they provided the only means for the sale and distribution of gas from the wellhead to local distribution companies (regulated utilities...

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