Border Pipe Line Co. v. Federal Power Commission

171 F.2d 149, 84 U.S. App. D.C. 142, 1948 U.S. App. LEXIS 3367
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 22, 1948
Docket9571
StatusPublished
Cited by23 cases

This text of 171 F.2d 149 (Border Pipe Line Co. v. Federal Power Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Border Pipe Line Co. v. Federal Power Commission, 171 F.2d 149, 84 U.S. App. D.C. 142, 1948 U.S. App. LEXIS 3367 (D.C. Cir. 1948).

Opinion

PRETTYMAN, Circuit Judge.

This is a petition for review of an order of the Federal Power Commission. Petitioner owns and operates a gas pipe line located wholly within the State of Texas. It sells its gas at its terminus near the Rio »Grande River to an industrial consumer which transports the gas into Mexico and uses it there.- Petitioner operates under permits for the export of gas issued to it in 1942 by the Commission 1 and by the President. 2 The order under review was issued February 14, 1947, and in it the Commission ¡held that petitioner is a “natural-gas company” within the meaning of the Natural Gas Act and thus must have ' a certificate of public convenience and necessity, which the* order authorized to issue. The consequence which gives rise to the controversy is that the order would place petitioner within all the federal regulatory provisions applicable under the statute to ‘‘natural-gas companies”.

The statute defines a natural-gas company as follows: 3

“(6) ‘Natural-gas company’ means a person engaged in the transportation of natural gas in interstate commerce, or the sale in interstate commerce of such gas for resale.

“(7) ‘Interstate commerce’ means commerce between any point in a State and any point outside thereof, or between points within the same State but through any place outside thereof, but only insofar as such commerce takes place within the United States.”

The Act contains numerous regulatory provisions relating to “natural-gas companies”. It also has a section 4 relating to the ¡export of gas from the United States, which section is applicable to any “person” and not merely to natural-gas companies. As we have indicated, petitioner has complied with this section.

Interstate commerce -and foreign commerce have been distinct ideas ever since they appeared as two concepts in the Constitution. The clause there provides that Congress shall have power “To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes”. 5 “Interstate commerce” does not include foreign commerce, unless Congress by definition for the purposes of a particular statute includes them both in the single expression. Congress has frequently done that. It has also many times applied its enactments to “interstate and foreign commerce” and is perfectly familiar with that expression and that idea. 6 In the present statute it first declared the necessity for federal regulation of tran-sporta *151 tion and sale “in interstate and foreign commerce”. It then provided one section applicable to -exports “from the United States to a foreign country”, and in other sections provided regulatory measures applicable to “interstate commerce”, defining that term without mention of foreign commerce. In view of the prevailing practice of Congress in other acts, the separation of the two subjects in this Act must be noticed and, we think, observed.

The plan of regulation revealed by the statute thus read seems reasonable. It seems reasonable, or at least not unreasonable, that Congress should, be concerned only with the fact of exportation or importation in the case of foreign commerce, but with rates, practices, accounting, facilities and financing in the case of domestic commerce. Of course, if a company be in both interstate and foreign commerce, one might burden the other and so produce the result which the burden of intrastate on interstate commerce -causes. But we do not have that situation here. The operation before us is wholly local, and it is only because of petitioner’s sales for foreign commerce that the Commission seeks to control all its activities.

Moreover, foreign commerce was specifically included in the bill which was the original legislative foundation for the final enactment of this A-ct, but was omitted in that enactment. In the bill introduced oh February 6, 1935, by Representative Rayburn, 7 addressed to the entire subject of federal public utility regulation, one Title related to nautral-gas companies. The phrase “or from or to any plac-e in the United States to or from a foreign country” was in the -section which defined -the .applicability of that part of the proposed act. Tha-t Title of Mr. R-aybum’s bill was not then enacted. Instead, the proposal for regulation of gas companies became H. R. 11662 in the next session, but without the phrase just quoted, and so the bill remained throughout successive sessions until enactment.

W-e are also impressed with the fact that although this petitioner was before the Commission and secured its permit to export in 1942, it was not until 1947 that the Commission asserted its -regulatory authority in other respects over that same ■business. We are not advised that the Commission has asserted that power in any other instance until its order in this case. The eight years and more which passed between the approval of the Act in 1938 and the first assertion by the Commission of general regulatory power over companies -engaged in foreign commerce but not otherwise subject to such general powers, seems to indicate a long-standing ■administrative view contrary to the Commission’s present position. Indeed it appears that when the Commission was considering the applications of this petitioner in 1942, counsel for the Commission advised it in writing that a certificate of ■public convenience and necessity under Section 7(c) was not required, saying in part:

“It is significant to note that the exportation of natural gas from the United States to a foreign country, or the importation of natural gas from a foreign -country is not ‘■interstate commerce’ as that term is contemplated by the A-ct. The legislative intent as to the limitation placed on the definition is clearly expressed in the concluding portion thereof, namely, ‘only in ■so far as such commerce takes place within *152 the United States.’ Applicant’s proposed operations do not include either transportation of natural gas in interstate commerce, or sales of natural gas in interstate commerce, which would bring such operations within the term, ‘interstate commerce’, as such term is defined by said Section 2(7) of the Act.”

The Commission vigorously urges various arguments based iipon internal evidence in the Act, which evidence they glean from reading various provisions. Petitioner follows the same process and obtains opposite results. Thus, the .Commission says that the clause “but only insofar as such commerce takes place within the United States” indicates that except for that limitation the Act would apply to commerce outside the United States. Petitioner says, on the contrary, that the clause is a specific exclusion from the Act of all foreign commerce and was intended to insure that such commerce which occurs even in the course of interstate commerce was not included Again the Commission perceives inconsistencies in the scheme of •regulation if it be not applied to foreign commerce. The petitioner, on the contrary, points to incongruities in the Act if its provisions be applied to such commerce.

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

Related

City of Oberlin, Ohio v. FERC
937 F.3d 599 (D.C. Circuit, 2019)
United States v. Wilfried Van Cauwenberghe
814 F.2d 1329 (Ninth Circuit, 1987)
West Virginia Public Services Commission v. United States Department of Energy, Economic Regulatory Administration, Southern Natural Gas Co., Etc., Columbia Lng Corp., Etc., Ugi Corporation, Pennsylvania Gas and Water Co., El Paso Algeria Co., Consolidated System Lngcompany, Dayton Power and Light Company, Columbia Gas Distribution Companies,etc.,georgia Industrial Gas Group and General Motors Corporation, Public Servicecommission of the State of New York, Atlanta Gas Light Company, Intervenors. Georgia Industrial Group and General Motors Corporation v. Department of Energy, Charles Duncan, Secretary of Energy, and Economicregulatory Administration, Hazel Rollins, Administrator, Southern Natural Gas Co., Etc., Ugi Corporation, Etc., Columbia Lngcorporation, Etc., Pennsylvania Gas and Water Co., El Paso Algeria Corporation,washington Gas Light Co., People's Counsel of Maryland, Consolidated System Lngco., Dayton Powerand Light Co., Columbia Gas Distribution Companies, Alabama Gascorporation, Cincinnati Gas & Electric Co., Intervenors. Consumer Federation of America and Consumer Energy Council of America v. Economic Regulatory Administration and Department of Energy, Southern Natural Gas Co., Etc., Ugi Corporation, Columbia Lng Corporation,etc., Pennsylvania Gas and Water Company, Dayton Power and Light Co., El Pasoalgeria Corporation, Consolidated System Lng Co., Washington Gas Light Co.,people's Counselof Maryland, Chattanooga Gas Company, Columbia Gas Distribution Companies,etc., Alabama Gas Corporation, Cincinnati Gas & Electric Co.,georgia Industrial Gas Group and General Motors Corporation, Public Servicecommission of Thestate of New York, Atlanta Gas Light Company, Gas Light Company of Columbus,intervenors
681 F.2d 847 (D.C. Circuit, 1982)
Citizens to Save Spencer County v. United States Environmental Protection Agency, Alabama Power Company, American Petroleum Institute, Sierra Club, Bf Goodrich Company, American Paper Institute, Hoosier Energy Division, Mountain Fuel Supply Company, Montana Power Co., Natural Resources Council of Maine, Pittston Co., Intervenors. Environmental Defense Fund, Inc. v. Douglas M. Costle, Administrator, U. S. Environmental Protection Agency Northern Cheyenne Tribe v. United States Environmental Protection Agency, Montana Power Co., Intervenors. Environmental Defense Fund, Inc. v. Douglas M. Costle, Administrator, U. S. Environmental Protection Agency, Natural Resources Council of Maine, Environmental Defense Fund, Inc. v. Douglas M. Costle, Administrator, U. S. Environmental Protection Agency, the Bf Goodrich Company v. United States Environmental Protection Agency, and Douglas M. Costle, Administrator, Hampton Roads Energy Company v. Douglas M. Costle, Administrator, Environmental Protection Agency, Northern Cheyenne Tribe, Sierra Club, and Friends of the Earth v. United States Environmental Protection Agency, the Montana Power Company v. Environmental Protection Agency and Douglas M. Costle, Administrator, Northern Cheyenne Tribe v. United States Environmental Protection Agency, Pittston Company, Colorado Interstate Gas Co., Ideal Basic Industries, Inc., Intervenors. Niagara Mohawk Power Corporation v. United States Environmental Protection Agency and Douglas M. Costle, Administrator, the Pittston Company v. United States Environmental Protection Agency and Douglas M. Costle, Administrator, American Paper Institute and the National Forest Products Association v. United States Environmental Protection Agency and Douglas M. Costle, Administrator, Manufacturing Chemists Association, Chemical Products Corporation, Dow Chemical Company, Fmc Corporation, Monsanto Company, Ppg Industries, Inc., Rohm and Haas Company, Stauffer Chemical Company, Union Carbide Corporation, Allied Chemical Corporation v. Environmental Protection Agency, Alabama By-Products Corporation v. United States Environmental Protection Agency, Koppers Company, Inc. v. Environmental Protection Agency and Douglas M. Costle, Administrator of Epa, Usm Corporation v. Environmental Protection Agency and Douglas M. Costle, Administrator, Epa
600 F.2d 844 (D.C. Circuit, 1979)
Precise Imports Corp. v. Kelly
218 F. Supp. 494 (S.D. New York, 1963)
Howard Industries, Inc. v. United States
83 F. Supp. 337 (Court of Claims, 1949)
East Ohio Gas Co. v. Federal Power Commission
173 F.2d 429 (D.C. Circuit, 1949)

Cite This Page — Counsel Stack

Bluebook (online)
171 F.2d 149, 84 U.S. App. D.C. 142, 1948 U.S. App. LEXIS 3367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/border-pipe-line-co-v-federal-power-commission-cadc-1948.