Interstate Natural Gas Ass'n of America v. Federal Energy Regulatory Commission

756 F.2d 166, 244 U.S. App. D.C. 145
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 5, 1985
DocketNos. 81-1680, 81-1690—81-1692, 81-1696, 81-1802, 82-1004 and 82-1177
StatusPublished
Cited by4 cases

This text of 756 F.2d 166 (Interstate Natural Gas Ass'n of America v. Federal Energy Regulatory 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
Interstate Natural Gas Ass'n of America v. Federal Energy Regulatory Commission, 756 F.2d 166, 244 U.S. App. D.C. 145 (D.C. Cir. 1985).

Opinions

Opinion for the Court Per Curiam.

Concurring Opinion filed by Circuit Judge SCALIA.

PER CURIAM.

On August 9, 1983, this court issued its opinion in Interstate Natural Gas Association of America v. FERC, 716 F.2d 1 (D.C.Cir.), cert. denied, — U.S. -, 104 S.Ct. 1615, 1616, 80 L.Ed.2d 144 (1983) (Interstate). We held that under the Natural Gas Policy Act of 1978,15 U.S.C. § 3301, et seq. (1982), the Federal Energy Regulatory Commission’s “dry” method of measurement of the Btu content of natural gas for wellhead pricing purposes was improper and resulted in prices in excess of those permitted under the statute. We instructed FERC to vacate its Order designating the “dry” method. Two consequences of our decision were inexorable: implement the proper pricing method for future pricing decisions, and remedy the effects of past use of the improper pricing method at the earliest possible moment.

The Interstate parties are before us again, in response to the motion of petitioner Associated Gas Distributors to enforce our mandate in Interstate. For the reasons stated below, we direct FERC to implement the refund procedures set forth in Order No. 399.

I.

Following the issuance of our mandate, FERC moved to comply with its terms. FERC issued a rule requiring wet pricing henceforth, 49 Fed.Reg. 3072 (1984). In further implementation of our holding in Interstate, FERC issued Order No. 399 which directed producers to refund the excessive costs arising from use of the improper “dry” method of calculation:

The Federal Energy Regulatory Commission (Commission) is amending and finalizing its regulations that establish refund procedures for overcharges resulting from adjustments to the calculation of energy content of natural gas ... sold pursuant to the Natural Gas Policy Act of 1978. In so doing, the Commission is [148]*148implementing [this court’s] decision in Interstate Natural Gas Association of America v. Federal Energy Regulatory Commission.

49 Fed.Reg. 37735 (1984) (footnote and citation omitted).

Order No. 399, issued pursuant to the requisite notice and comment, established a system of refunds that fulfilled the premises of our decision. Under the Order, producers of natural gas were to refund to pipelines the overcharges made under the improper “dry” method. These refunds were to be paid over by the pipelines to natural gas customers who had, in the first instance, paid these excessive charges. Under the Order, “large producers” were to have refunded their overcharges on November 5, 1984, while “small producers” were scheduled to issue their refunds on May 3, 1985. To date, no refunds have been made.

FERC explicitly prohibited producers from offsetting their refund obligations against any monies owed them by the pipelines. Order No. 399, 49 Fed.Reg. 37738-39. This prohibition had particular reference to claims the producers had made for additional monies due them under Section 110 of the Natural Gas Policy Act. FERC has issued Order No. 94-A allowing producers to collect these “Section 110 costs” from pipelines. 48 Fed.Reg. 5152 (1983). Order No. 94-A is now under review in the United States Court of Appeals for the Fifth Circuit. Texas Eastern Transmission Corp. v. FERC, No. 83-4390 (5th Cir. filed 1983).

In rejecting the use of offsets, FERC recognized not only that many of the Section 110 costs owed had not been paid, but also that tying these unrelated and disputed costs to refund of the improper “dry” charges would delay and disrupt the implementation of our decision. FERC stated in Order 399:

The Commission also believes that permitting offsets of section 110 costs and Btu refunds would complicate an already difficult process and would make Commission monitoring of Btu refunds more difficult. In addition, the Commission is concerned that permitting pipelines and firstsellers to offset section 110 costs and Btu refunds could prevent the Btu refunds from reaching as many of the customers actually overcharged as possible. Considering that the section 110 orders are also subject to judicial review, the Commission believes it is more appropriate to segregate the collection of section 110 costs from the Btu refunds.

49 Fed.Reg. 37739.

Two months after issuing Order No. 399, FERC abruptly reversed its position on offsets, and, in Order No. 399-A, 49 Fed.Reg. 46353 (1984), FERC, without addressing the weighty rationale behind its earlier Order, authorized producers to offset their refund obligations by deducting monies due them under Section 110.

II.

Associated Gas Distributors has moved this court for an order commanding FERC to comply with our mandate by directing producers to make appropriate refunds to pipelines immediately, as set forth in Order No. 399. A petition for review of Orders No. 399 and 399-A is currently pending in the Fifth Circuit. See Mobil Oil Exploration & Producing Southeast Inc. v. FERC, No. 84-4775 (5th Cir. filed Nov. 20, 1984). The Fifth Circuit, however, has issued an order delaying filing of the administrative record in Mobil until after this court issues its ruling in the present case. Accordingly, jurisdiction in the instant matter properly lies in this court. See 15 U.S.C. § 3416(a)(4).

The availability of mandamus to confine FERC to the terms of this court’s mandate is fully supported by precedent. See, e.g., Briggs v. Pennsylvania R.R., 334 U.S. 304, 306, 68 S.Ct. 1039, 1040, 92 L.Ed. 1403 (1948); Yablonski v. UMW, 454 F.2d 1036, 1038-39 (D.C.Cir.1971), cert. denied, 406 U.S. 906, 92 S.Ct. 1609, 31 L.Ed.2d 816 (1972). FERC protests, however, that our mandate did not reach so far as to preclude the offset authorized by Order No. 399-A. We need not enter the debate over the [149]*149propriety of resort to mandamus in this ease, because, in any event, Associated Gas Distributors’ motion to enforce the mandate may be treated as a petition to review that order.

Federal appellate courts have broadly recognized that the filing of a paper substantially equivalent to one that formally. inaugurates the normal review process may well suffice for that purpose. Thus the need for a notice of appeal may be satisfied- by any of a variable host of filings evincing unequivocably an intention to appeal. See, e.g., Belton v. United States, 259 F.2d 811, 814 (D.C.Cir.1958) (en banc) (letter requesting leave to appeal in forma pauperis) (citing cases); Riffle v. United States, 299 F.2d 802 (5th Cir.1962) (letter to judge of court of appeals). The reason is that the content requirements of a notice of appeal, see Fed.R.App.P.

Related

Interstate Natural Gas Association of America v. Federal Energy Regulatory Commission, Mobil Oil Corporation, General American Oil Company of Texas, Phillips Petroleum Company, Pennzoil Company, Mississippi River Transmission Corp., Shell Oil Company, Exxon Corporation, Laclede Gas Company, Getty Oil Company, Louisiana Land & Exploration Company, Associated Gas Distributors, Northern Natural Gas Company, Texas Gas Transmission Corporation, Texaco, Inc., Tenneco Oil Company, Houston Oil and Minerals Corporation, Gulf Oil Corporation, Placid Oil Company, Aminoil, Usa, Inc., Intervenors. Michigan Wisconsin Pipeline Company v. Federal Energy Regulatory Commission, Mobil Oil Corporation, Amoco Production Company, General American Oil Company of Texas, Phillips Petroleum Company, Pennzoil Company, Exxon Corporation, Shell Oil Company, Tenneco Oil Company, Union Oil Company of California, Louisiana Land & Exploration Company, Getty Oil Company, Associated Gas Distributors, Laclede Gas Company, Sun Oil Company, Arco Oil & Gas Company, Placid Oil Company, Texaco, Inc., Gulf Oil Corporation, Intervenors. Transcontinental Gas Pipe Line Corporation v. Federal Energy Regulatory Commission, Mobil Oil Corporation, General American Oil Company of Texas, Phillips Petroleum Company, Pennzoil Company, Shell Oil Company, Associated Gas Distributors, Getty Oil Company, Louisiana Land & Exploration Company, Texaco, Inc., Exxon Corporation, Sun Oil Company, Tenneco Oil Company, Houston Oil and Minerals Corporation, Gulf Oil Corporation, Placid Oil Company, Intervenors. Natural Gas Pipeline Company of America v. Federal Energy Regulatory Commission, Mobil Oil Corporation, General American Oil Company of Texas, Phillips Petroleum Company, Pennzoil Company, Shell Oil Company, Laclede Gas Company, Associated Gas Distributors, Getty Oil Company, Louisiana Land & Exploration Company, Texaco, Inc., Sun Oil Company, Chevron, Usa, Exxon Corporation, Tenneco Oil Company, Houston Oil and Minerals Corporation, Gulf Oil Corporation, Placid Oil Company, Intervenors. Lone Star Gas Company v. Federal Energy Regulatory Commission, General American Oil Company of Texas, Phillips Petroleum Company, Pennzoil Company, Shell Oil Company, Laclede Gas Company, Louisiana Land & Exploration Company, Getty Oil Company, Associated Gas Distributors, Valero Transmission Company, Texaco, Inc., Exxon Corporation, Sun Oil Company, Tenneco Oil Company, Houston Oil and Minerals Corporation, Gulf Oil Corporation, Placid Oil Company, Panhandle Eastern Pipe Line Co., Intervenors. Laclede Gas Company v. Federal Energy Regulatory Commission, Lone Star Gas Company v. Federal Energy Regulatory Commission, Exxon Corporation, Conoco Inc., General American Oil Company of Texas, Pennzoil Company, Tenneco Oil Company, Union Oil Co. Of California, Getty Oil Company, Aminoil Usa, Inc., Gulf Oil Corporation, Texaco, Inc., Mobil Oil Corporation, Houston Oil and Minerals Corporation, Shell Oil Company, Atlantic Richfield Company, Sun Exploration and Production Co., Intervenors. Associated Gas Distributors v. Federal Energy Regulatory Commission
756 F.2d 166 (D.C. Circuit, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
756 F.2d 166, 244 U.S. App. D.C. 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interstate-natural-gas-assn-of-america-v-federal-energy-regulatory-cadc-1985.