Department of Public Utilities v. Arkansas Louisiana Gas Co.

108 S.W.2d 586, 194 Ark. 354, 1937 Ark. LEXIS 368
CourtSupreme Court of Arkansas
DecidedJune 28, 1937
Docket4-4640
StatusPublished
Cited by6 cases

This text of 108 S.W.2d 586 (Department of Public Utilities v. Arkansas Louisiana Gas Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Public Utilities v. Arkansas Louisiana Gas Co., 108 S.W.2d 586, 194 Ark. 354, 1937 Ark. LEXIS 368 (Ark. 1937).

Opinion

Griffin Smith, C. J.

General Order No. 13 was issued by appellant on April 13, 3935. It directed public utility companies doing’ business within the state, as defined in § 1 of act 324 of 1935, to file with the Department of Public Utilities all schedules of rates in effect as of April 2, 1935. In response to this order, appellee, a Delaware corporation doing business in Arkansas, filed a partial schedule. From this report there was omitted the schedule of rates charged for certain classes of ser-, vice. Included in the class of service for which no schedule was, filed were about forty customers who purchased large quantities of gas for industrial purposes, and five classified as customers buying at wholesale and engaged in retail distribution to individual customers.

On November 4, 1935, tlie Department issued a citation, requiring the respondent-appellee to show canse why it should not file schedules applicable to the class of business not included in the former report, and for convenience these customers will be referred to as pipe line customers.

The response filed with the Department was an allegation that the sales in question constituted transactions in interstate commerce, and therefore the Department was without power to regulate. The cause was set for hearing. Evidence was introduced, witnesses were examined and cross-examined, and a brief was filed by 'the respondent. Thereupon, the Department made a finding of facts, as follows:

“The respondent owns natural gas acreage in Northern Louisiana and in the Clarksville field in Arkansas, and produces gas from the acreage in each state.. The respondent owns and operates a pipe line extending from'the Clarksville field to Little Rock, and by means of this line supplies six or seven of its own city distribution plants with gas produced in that field. In addition to supplying gas to its own distribution plants respondent sells gas from that field to Empire Southern Gas Company, Arkansas Western Gas Company, and the Little Rock Gas & Fuel Company. Each of these companies resells and distributes the gas so purchased to consumers through city distribution plants. ' All of the gas produced in the Clarksville field is transported, sold, distributed and consumed exclusively in Arkansas.

“During the hearing- the respondent filed schedules showing charges for gas produced in the Clarksville field and sold and delivered to Empire Southern Gas Company and Arkansas Western Gas Companv.

“The gas produced by respondent in Louisiana is, along with gas purchased in that state, turned into a pipe line system owned and operated by respondent and by means of rock pressure, or compressor stations, strategically located, forced under high pressure ranging from 150 to 200 pounds per square inch, to points of consumption or delivery for resale to consumers in the states of Arkansas, Louisiana and Texas. The re-' spondent owns and operates three pipe lines and leases and operates another, all of which are laid across the line between the states of Arkansas and Louisiana. These lines are identified as lines A, C, H and K. Line C was not used for transporting gas into Arkansas at the time of the hearing and had not been for some time prior thereto; therefore, no further reference will be made to Line C.

“Line A crosses the Arkansas-Louisiana line some eight or ten miles east of a point where the states of Arkansas, Louisiana, and Texas join. This line extends in a northeasterly direction from the state line crossing, to the southwestern corporate limits of the city of Little Bock. Line H is not owned, but is leased and operated, by the respondent and crosses the line between the states of Arkansas and Louisiana some fifteen or twenty miles east of Junction City, Arkansas, and extends in a northwesterly direction to what is designated as Crusader Station No. 1 in Union county, Arkansas. Line K crosses the line between the states of Arkansas and Louisiana a few miles east of where said state line is crossed by Line H and extends in a northwesterly direction to the Barton Compressor Station located a short distance north of the city of El Dorado, and continuing thence in a northwesterly direction to the city of Camden, Arkansas. By means of Line E, extending from the Trees Compressor Station located on Line A near Emmett, Arkansas, in a southeasterly direction to Barton Compressor Station, and by means of Line E-l (in reality an extension of Line E), Lines A, H, and K are interconnected.

“Lines A, E, H, and K constitute the principal or primary transportation system of respondent in South Arkansas. Laterals or spurs have been built from these lines for the purpose of serving industries and city distribution plants along and, in some instances, far removed from the location of said transmission lines. All gas transported into Arkansas by respondent moves through one or more of said lines, or laterals, or spurs thereto, in r'eaching a place of consumption. By means of said lines gas is transported and delivered to the gateway of more than fifty city distribution plants in Arkansas owned by the respondent, to approximately 318 rural customers along the lines, and to the pipe line customers.

“In addition to the lines hereinabove described, there are in what is called the El Dorado District, a vast number of lines, primarily, constructed and now generally used, to distribute gas to oil wells and petroleum industries located in this area and not to transport gas beyond or through it.

“All of the gas transported by respondent from the state of Louisiana into the state of Arkansas is consumed in Arkansas, with the exception of a relatively small amount consumed by citizens in Texarkana, Texas, and Junction • City, Louisiana, served through city distribution plants.

“The gas moves across the Arkansas-Louisiana states line through each of Lines A, H and K for the purpose of serving the respondent’s customers in Arkansas. At times the principal portion of this demand is supplied throug-h Line Ag at other times through either, or both, Line H or K. When the principal supply of gas is brought into Arkansas through Line A a portion of it is diverted into Line E and carried to the El Dorado District, and when the principal supply is carried through either or both, Line H and K, a portion of the gas is diverted through Line E into Line A. The lines in Arkansas are filled at all times with gas under high pressure, in readiness to serve as needed. The movement, volume and pressure of the gas in the pipe line are directly governed by the use of appliances owned by consumers irrespective of whether said consumers are served directly through a tap- off of a pipe line or some spur thereof, or through a city or town distribution plant.

“There are 415 customers in Arkansas served through taps on Lines A, E, H, or K, and their laterals or spurs, if we treat each city or town distribution plant as a customer. These consist of 318 rural consumers, 54 of respondent’s city distribution plants, and the pipe line customers consisting* of 40 industrial consumers, 2 city distribution plants owned by corporations affiliated with the respondent and one independently owned city plant.

“Line A has 141 taps in Arkansas between the state line and Little Rock, Line H has 117 taps, Line K has 99 taps, and Line E has 23 -taps.

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Related

Glover v. Henry
328 S.W.2d 382 (Supreme Court of Arkansas, 1959)
United Gas Pipe Line Co. v. Lee
17 So. 2d 553 (Supreme Court of Florida, 1944)
Arkansas-Louisiana Gas v. Hardin, Comm. of Rev.
176 S.W.2d 903 (Supreme Court of Arkansas, 1944)
Southern Kraft Corp. v. Hardin, Comm. of Revenues
169 S.W.2d 637 (Supreme Court of Arkansas, 1943)
Mississippi River Fuel Corp. v. Smith
164 S.W.2d 370 (Supreme Court of Missouri, 1942)

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Bluebook (online)
108 S.W.2d 586, 194 Ark. 354, 1937 Ark. LEXIS 368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-public-utilities-v-arkansas-louisiana-gas-co-ark-1937.