Michigan Consolidated Gas Co. v. Sohio Petroleum Co.

32 N.W.2d 353, 321 Mich. 102
CourtMichigan Supreme Court
DecidedMay 18, 1948
DocketDocket No. 75, Calendar No. 43,844.
StatusPublished
Cited by9 cases

This text of 32 N.W.2d 353 (Michigan Consolidated Gas Co. v. Sohio Petroleum Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michigan Consolidated Gas Co. v. Sohio Petroleum Co., 32 N.W.2d 353, 321 Mich. 102 (Mich. 1948).

Opinions

Dethmers, J.

Under an order of the Michigan public service commission, entered June 18, 1946, in conformity with the provisions of Act No. 9, Pub. Acts 1929 (2 Comp. Laws 1929, §§ 11632-11651 [Stat. Ann. §§ 22.1311-22.1330] B hereinafter referred to as Act. No. 9, the plaintiff is á common purchaser of natural gas from certain sections in Garfield and Freeman townships in Clare county and Orient and *104 Sylvan townships in Osceola county, hereinafter called the Garfield-Orient field, in and from which it owns and operates a gathering and transmission pipe line.

Defendant Sohio Petroleum Company is the owner and operator of a natural gas pipe line extending from Coldwater township, Isabella county, to the city of Midland, used for transporting natural gas from wells owned and operated by it in the Cold-water field to a contract purchaser, Dow Chemical Company, at Midland. In the summer of 1947 Sohio began an extension of its pipe line from Coldwater township to the Garfield-Orient field, in which it also owned a number of gas wells, for the purpose of gathering its gas from those wells and transporting and selling it to Dow Chemical Company.

Thereupon plaintiff filed its bill of complaint alleging that Sohio has not sought nor obtained approval of its pipe line from the Michigan public service commission nor a certificate of public convenience and necessity therefor as provided in Act No. 9; that plaintiff, as a common purchaser in the Garfield-Orient field, alone has the right to gather gas therein; that plaintiff is willing and able to purchase all ,gas produced in that field; that an existing gas shortage makes it impossible for plaintiff, as a utility, to supply all the demands of its customers and that the gas owned by Sohio in its wells in that field should be used for the benefit of plaintiff’s customers; that by gathering and transporting and selling gas from its own wells in the Garfield-Orient field Sohio violates the plaintiff’s rights as the sole common purchaser of gas in that field; that plaintiff, as a common purchaser, is subject to proration under commission rules as relates to wells from which it gathers gas, that such wells are set-offs to Sohio’s wells, and, if Sohio be permitted to proceed without commission regulation and not subject to proration orders, plain *105 tiff will be deprived of the full amount of gas it would otherwise obtain from wells it owns or as to which it has gas purchase contracts; that two competing gathering systems in the field will cause a waste of gas and will not preserve public peace, safety and convenience; that no one may locate or operate a gas pipe line along or across highways without commission approval; that natural gas is volatile and its transportation involves hazards and, for that reason, Act No. 9 confers regulatory powers with respect thereto on the commission in order to promote public safety; that Sohio may not construct its pipe line without commission approval and a certificate of public convenience and necessity. Plaintiff’s bill prays, therefore, that the defendant public service commission be enjoined from giving its approval to construction of such pipe line and gathering branches by Sohio and from granting it a certificate of convenience and necessity until Sohio has filed with the commission the application and information required by section 9 of Act No. 9 and a hearing is had thereon, and that Sohio be enjoined from proceeding with the construction of its transmission line and gathering branches and, if completed, from transporting natural gas through them and from interfering with plaintiff’s rights as a common purchaser in the Garfield-Orient field.

A hearing was had on a show cause order for an injunction as prayed during pendency of suit and on defendant Sohio’s motion to dismiss plaintiff’s bill of complaint. From an order dismissing the bill of complaint and dissolving a temporary injunction restraining Sohio from constructing the pipe line or transporting gas through it the plaintiff appeals.

In its statement of reasons and grounds of appeal, and also in its statement of questions involved on appeal, plaintiff takes the position that the court erred in dismissing plaintiff’s bill of complaint and dis *106 solving the temporary injunction and in holding that Sohio was transporting gas for strictly private use and not for hire and was, therefore, not within the terms of Act. No. 9. The issues raised by plaintiff’s bill of complaint and the restraining order are, therefore, before us, including not only the question of Sohio’s right to construct the pipe line without previous commission approval, but also its right to operate the pipe line and transport its gas through it without compliance with Act No. 9 and without a certificate of public convenience and necessity.

In contending that Sohio is subject to and must comply with Act No. 9 as relates to its operations here involved, plaintiff relies on the following provisions of the act:

“Section 1. Every corporation, association or person, now or hereafter exercising or claiming the right to carry or transport natural gas by or through pipe line or lines, for hire, compensation or otherwise, or now or hereafter exercising or claiming the right to engage in the business of piping or transporting natural gas, or any other person or persons, now or hereafter engaging in the business of buying and selling or transporting natural gas within the limits of this State, shall not have or possess the right to conduct or engage in said business or operations, in whole or in part, as above described, or have or possess the right to locate, maintain or operate the necessary pipe lines, fixtures and equipment thereto belonging, or use in connection therewith, concerning the said business of carrying or transporting natural gas as aforesaid, on, over, along, across, through, in or under any present or future highway, or part thereof, or elsewhere, within the State, or have or possess the right of eminent domain, or any other right or rights, concerning said business or operation, in whole or in part, except as authorized by and subject to the provisions of this act, except,further, and only such right or rights as may already *107 exist which are valid, vested, and incapable of revocation by any law of this State or of the United States. * * *

“Sec. 9. Any corporation, association or person within the terms of this act desiring to construct transmission mains for the transportation or conveying of natural gas from its source to the locality or localities where utilized, shall submit to the commission, accompanied by due application, a map or plat of such proposed line or lines which it desires to construct, showing the dimensions and character of such proposed pipe line or lines, its compression stations, control valves, and connections, and shall first receive the approval of the commission of such map, route and type of construction before proceeding with the actual construction of such transmission lines, and it shall be the duty of the commission to examine and inquire into the necessity and practicability of such transmission line or lines and to determine that such line or lines will when constructed and in operation serve the convenience and necessities of the public before approval of such map and proposed transmission, line or lines.”

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Bluebook (online)
32 N.W.2d 353, 321 Mich. 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michigan-consolidated-gas-co-v-sohio-petroleum-co-mich-1948.