Atlanta Gas Light Co. v. Federal Power Commission

476 F.2d 142, 99 P.U.R.3d 66
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 7, 1973
DocketNos. 72-1475, 72-1539 and 72-1415
StatusPublished
Cited by8 cases

This text of 476 F.2d 142 (Atlanta Gas Light Co. v. Federal Power Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlanta Gas Light Co. v. Federal Power Commission, 476 F.2d 142, 99 P.U.R.3d 66 (5th Cir. 1973).

Opinion

BELL, Circuit Judge:

Under § 4 of the Natural Gas Act, 15 U.S.C.A. § 717c, any “natural-gas com[144]*144pany” must file with the Federal Power Commission a notice of any change in a service rendered by the company in connection with the sale or transportation of natural gas subject to the jurisdiction of the Commission. Subsections (d) and (e) of § 4 provide that the Commission may, upon receipt of a notice of change, allow the change to take effect, or it may “suspend” the change until it determines, after hearing, that the change is lawful.1 These consolidated appeals arise (1) from petitions for review filed by Alabama Gas Corporation (Alagasco), Atlanta Gas Light Company (Atlanta Gas), et al., who challenge the lawfulness of the Commission’s action in allowing Southern Natural Gas Company (Southern), a jurisdictional pipeline, to institute a plan which curtails gas deliveries under contracts between Southern and the petitioners, and (2) from the dismissal by the district court of a complaint filed by Atlanta Gas and others seeking declaratory relief against the Federal Power Commission for its inter[145]*145im adoption of Southern’s curtailment plan, and equitable relief and damages against Southern for breach of its service contracts. We affirm the action of the Commission challenged in the petitions for review, and we affirm the dismissal of that portion of the district court complaint which relates to the prayer for declaratory and equitable relief. For reasons stated, we vacate the dismissal of that portion of the complaint which relates to the prayer for damages and remand to the district court to retain jurisdiction for possible further proceedings.

Nos. 72 — HI 5 and 72-U75

On April 15, 1971, the Federal Power Commission issued Order No. 431. That order required all jurisdictional pipelines to submit “written reports” to the Commission stating how the pipelines would implement the Commission’s policy of protecting the dwindling supply of natural gas and of insuring reliable and adequate service for the 1971-1972 heating season.2 The order provided that any pipeline which, because of shortages, found that it would be “necessary” to curtail service during the heating sea[146]*146son should file with the Commission revised tariff sheets embodying a curtaih ment plan, “pursuant to §§ 4 and 5 of the Natural Gas Act.” See footnote (2).

In response to Order No. 431, Southern filed a revised tariff sheet with the Commission on November 24, 1971. The revised tariff curtailed the volume of gas which Southern was obliged to deliver under contracts with certain customers and established service priorities among several classes of customers.3 Relying upon a statement by Southern that some curtailment of firm service commitments would be necessary during the 1971-1972 season, but expressly declining to decide whether elements of the plan were otherwise lawful, the Commission permitted the plan to take effect after a nominal suspension period of one day, pending completion of suspension proceedings under § 4. These proceedings are still pending.

[147]*147Alagasco, Atlanta Gas, and others,4 whose service contracts with Southern were affected by the curtailment plan, petitioned the Commission for leave to intervene in the suspension proceedings. When the Commission permitted the curtailment plan to take effect, the intervenors requested the Commission to reconsider its interim action. These petitions were denied. A petition for partial stay of the suspension order, filed by Atlanta Gas, was denied by the Commission on March 24,1972.

The petitions for judicial review of the Commission’s action, filed pursuant to § 19 of the Act, 15 U.S.C.A. '§ 717r, followed in due course.

The petitioners contend that the Commission cannot, under § 4, permit a curtailment plan to take effect on an interim basis without making, at the very least, a preliminary determination that the curtailment is necessary in order to effectuate the policies of Order No. 431. The petitioners contend, further, that where, as they alleged, the curtailment plan establishes service priorities that are inconsistent with priorities established in outstanding certificates of public service and convenience, the Commission cannot allow the plan to take effect without invoking the elaborate hearing procedure set out in § 7 of the Act, 15 U.S.C.A. § 717f. Finally, the petitioners contend that the Commission’s action was unlawful because the Commission did not, prior to the interim action, undertake a detailed evaluation of the environmental impact of the curtailment order, as required by the National Environmental Protection Act (NEPA), 42 U.S.C.A. § 4321 et seq.

The Commission maintains, first, that the contested action was not a reviewable order; second, that it may properly employ § 4 procedures, unadorned by preliminary findings of fact, in the exercise of its curtailment power; and finally, that the NEPA does not require the issuance of a detailed environmental statement prior to the issuance of an interim suspension order.

Reviewability

The Natural Gas Act provides for review by the court of appeals of “an order issued by the Commission in such proceeding” under the Act. 15 U.S.C.A. § 717r(b). The Act does not require that the order be “final”, and the Act does not, by its terms, impose any other limitation on the class of actions subject to review. The courts have recognized this fact; nevertheless, they have traditionally declined to review many actions which, in a literal sense, are “orders issued by the Commission in a proceeding” under the Act. In general, the courts have declined to review non-final orders that are not “definitive” in their impact upon the rights of the parties and do not threaten the petitioner with “irreparable harm”. See Federal Power Commission v. Metropolitan, Edison Co., 1938, 304 U.S. 375, 58 S.Ct. 963, 82 L. Ed. 1408; Amerada Petroleum Corp. v. Federal Power Commission, 10 Cir., 1960, 285 F.2d 737; Algonguin Gas Transmission Co. v. Federal Power Commission, 1 Cir., 1953, 201 F.2d 334.

The requirement that the reviewable order be “definitive” in its impact upon the rights of the parties is something more than a requirement that the order be unambiguous in legal effect. It is a requirement that the order have some substantial effect on the parties which cannot be altered by subsequent administrative action. See Atlantic Seaboard Corp. v. Federal Power Commission, 4 Cir., 1953, 201 F.2d 568. The additional condition of reviewability —the requirement that the order threaten “irreparable harm” — is, to that extent, redundant, since an “irreparable” injury, like the effect of a “definitive” order, cannot be redeemed by subsequent official action. See Atlantic Seaboard Corp. v. Federal Power Commission, supra at 572.

[148]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
476 F.2d 142, 99 P.U.R.3d 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlanta-gas-light-co-v-federal-power-commission-ca5-1973.