BP Products North America, Inc. v. Indiana Office of Utility Consumer Counselor

964 N.E.2d 234, 2011 WL 2791152, 2011 Ind. App. LEXIS 1318
Indiana Court of Appeals·Decided July 18, 2011·No. 93A02-0905-EX-490·Published·Cited by 3 cases

Opinion

*235 OPINION ON REHEARING

SHARPNACK, Senior Judge.

We grant rehearing to consider Appel-lee/Cross-Appellant Northern Indiana Public Service Company’s (“NIPSCO”) cross appeal, which raises the issue of whether the Indiana Utility Regulatory Commission (“IURC”) erred when it determined that Appellant/Cross-Appellee BP Products North America, Inc. (“BP”), was not a public utility with respect to the furnishing by it of natural gas it purchased from NIPSCO to Marsulex.

In our Opinion of April 25, 2011 (“Opinion”), we declared the cross appeal issue to be moot as a result of our resolution of the other issues on appeal. BP Prods. N. Am., Inc. v. Ind. Office of Util. Consumer Counselor, 947 N.E.2d 471, 473 n. 1 (Ind.Ct.App.2011). That was an incorrect conclusion. We should have considered the issue then, and we do so now. On this issue we reverse the IURC and remand. On all other issues we reaffirm our decision as set forth in the Opinion.

The Opinion sets forth the factual and procedural history of the case. See id. at 473-74. The facts relevant to NIPSCO’s cross appeal are as follows. BP’s refinery in Whiting, Indiana, covers approximately 1400 acres. Marsulex is a tenant at the refinery. Marsulex owns and operates a Sodium Bisulfite unit (“SBS unit”) and an acid loading/unloading rail rack (“Rail Rack”), both of which were formerly owned by BP. The SBS unit and Rail Rack provide materials that are necessary to BP’s manufacturing process. BP purchases natural gas from NIPSCO, which NIPSCO delivers to BP’s refinery. Once the natural gas arrives at the refinery, BP transmits some of it to Marsulex through pipes owned by BP. Marsulex uses the natural gas to operate the SBS unit. BP provides the natural gas to Marsulex at cost.

When BP filed this action with the IURC, it informed the IURC that it distributed natural gas to Marsulex and asked the IURC to issue any required certificates or permits or, in the alternative, to decline to exercise regulatory authority over BP’s provision of services to Marsulex and others. In its May 13, 2009, order, the IURC determined that, with respect to BP’s provision of natural gas to Marsulex, BP was not a public utility.

BP appealed the IURC’s May 13, 2009, order on grounds unrelated to its distribution of natural gas to Marsulex. NIPSCO, who had not previously been a party to the case, received permission from this Court to intervene in the appeal. While the appeal was pending, BP discovered the existence of an agreement between NIPSCO and a predecessor in interest to BP that was relevant to the case. Consequently, BP obtained this Court’s permission to remand the case to the IURC to reconsider its decision in light of the agreement. On remand, NIPSCO received permission to intervene in the IURC proceedings. After considering additional evidence, the IURC issued a June 23, 2010, order that did not alter its prior determination that BP was not a public utility with respect to BP’s distribution of natural gas to Marsu-lex. BP appealed the IURC’s order, and NIPSCO pursued a cross appeal.

Our standard of review for NIPSCO’s cross appeal is the same as our standard of review for BP’s appeal. See BP, 947 N.E.2d at 476. First, we determine whether the decision is supported by specific findings of fact and by sufficient evidence. Hancock Cnty. Rural Elec. Membership Corp. v. City of Greenfield, 768 N.E.2d 909, 911 (Ind.Ct.App.2002). Second, we consider whether the decision is contrary to law. Id. A decision is contrary to law when the Commission fails to stay *236 within its jurisdiction and to abide by the statutory and legal principles which guide it. Id. The interpretation of a statute is a question of law reserved for the courts, and we review such interpretation under a de novo standard. Ind.-Ky. Elec. Corp. v. Comm’r, Ind. Dep’t of Envtl. Mgmt., 820 N.E.2d 771, 777 (Ind.Ct.App.2005). If a statute is subject to different interpretations, the interpretation of the statute by the administrative agency charged with the duty of enforcing the statute is entitled to great weight. Id. However, an agency’s interpretation that is incorrect is entitled to no weight. Id.

NIPSCO contends that BP is a public utility for the purpose of distributing natural gas to Marsulex. Before we address the merits of this contention, BP and Appellant/Cross-Appellee United States Steel Corporation (“U.S. Steel”) contend that NIPSCO has waived its cross appeal. Specifically, BP and U.S. Steel assert that NIPSCO did not present its cross appeal claim to the IURC before presenting it in this appeal.

Generally, a party may not raise an issue on appeal that was not raised in the trial court. West Bend Mut. Ins. Co. v. 1st Choice Ins. Servs., 918 N.E.2d 684, 689 (Ind.Ct.App.2009), trans. denied. The crucial factor in determining whether a party may inject what appears to be a new issue into the appeal is whether the opposing party had unequivocal notice of the existence of the issue, and therefore, had an opportunity to defend against it. Hardiman v. Governmental Interinsurance Exch., 588 N.E.2d 1331, 1333 (Ind.Ct.App.1992), trans. denied.

In this case, on remand from this Court, NIPSCO presented the following testimony to the IURC:

NIPSCO was not aware that BP was transporting natural gas to Marsulex, and there was no contractual arrangement between NIPSCO and BP, or tariff provision, that permitted this. NIPSCO believes that the Commission’s interpretation of Ind.Code § 8-l-2-87.5(b)(3) is incorrect. NIPSCO would welcome the opportunity to address this issue as part of this remand, but it is not clear whether the scope of the remand is limited solely to issues relating to the resale of electricity.

Remand Tr., Ex. Vol., p. 83. Thus, NIP-SCO raised the issue of BP’s provision of natural gas to Marsulex in remand proceedings before the IURC. Furthermore, BP had previously notified the IURC that it transmitted natural gas to Marsulex and asked the IURC to issue any “permits or certificates” that may be necessary or, alternatively, to “decline jurisdiction” over “the provision of electricity and natural gas to Marsulex.” Appellants’ App. p. 49. Having explicitly requested a ruling from the IURC on the issue that is the subject of NIPSCO’s cross appeal, BP cannot argue that it lacked unequivocal notice of the existence of the issue and was denied an opportunity to litigate it. We decline to hold that NIPSCO’s cross appeal claim is waived.

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

BP Products North America, Inc. v. Indiana Office of Utility Consumer Counselor, 964 N.E.2d 234, 2011 WL 2791152, 2011 Ind. App. LEXIS 1318 (Ind. Ct. App. 2011).

964 N.E.2d 234 (BP Products North America, Inc. v. Indiana Office of Utility Consumer Counselor) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related