Michigan Consolidated Gas Company, a Corporation v. Federal Power Commission, Panhandle Eastern Pipe Line Company, East Ohio Gas Company, Intervenors

282 F.2d 854, 108 U.S. App. D.C. 371, 1960 U.S. App. LEXIS 4048
Court of Appeals for the D.C. Circuit·Decided July 11, 1960·No. 15358·Published

Opinion

BAZELON, Circuit Judge.

This case is an adjunct to Michigan Consolidated Gas Co. v. Federal Power Comm., No. 14975, 108 U.S.App.D.C. 409, 283 F.2d 204, decided April 29, 1960. There we set aside orders of the Commission authorizing Panhandle Eastern Pipe Line Company (“Panhandle”) to abandon its deliveries of 127,000 thousand cubic feet (“Mcf”) of natural gas per day to Michigan Consolidated Gas Company (“Michigan Consolidated”). Michigan Consolidated brought the instant proceedings to review a subsequent order of the Commission approving Panhandle's proposal to distribute 157,000 Mcf of gas among its resale (utility) customers. The great bulk of this 157,000 Mcf (i. e., 127,000 Mcf) became available to Panhandle as a result of the abandonment. The remaining 30,000 Mcf were made available by an expansion of Panhandle’s transmission facilities.

The Commission held a consolidated hearing, from which Michigan Consolidated was excluded, concerning the approval of that expansion and the proposed distribution of the combined 157,-000 Mcf. The order here under review allocated the full 157,000 Mcf to resale customers having relatively low space-heating saturations (i. e., relatively great need for the gas) 1 2 during the five months of peak demand — November through March. During off-peak periods, most of the 30,000 Mcf made available by the expansion was allocated to East Ohio Gas Company, an intervenor here. East Ohio, which has a relatively high saturation and an alternate source of supply, 8 got none of the 157,000 Mcf for winter use, and none of the “abandonment gas” (i. e., the 127,000 Mcf) for summer use. We will treat separately the issues raised with respect to the 127,-000 Mcf and the 30,000 Mcf.

1. The 127,000 Mcf: Both Michigan Consolidated and the Commission agreed that our opinion in No. 14975, setting aside the abandonment orders, requires that the order in this case, insofar as it pertains to the abandonment gas, also be set aside on the grounds that it is moot. 3 Manifestly, the Commission cannot distribute this gas unless and until abandonment is validly accomplished. But the parties do not agree on the proper interim allocation of this gas. The controversy arises because the Commission’s abandonment order took effect pending our consideration of No. 14975. 4 Panhandle has thus terminated its deliveries to Michigan Consolidated and is currently delivering the abandonment gas to its resale customers pursuant to the order here under review.

Michigan Consolidated asks us to direct the Commission to require Panhandle to resume delivery to Michigan Consolidated forthwith. The Commis *857 sion opposes this request, without stating its reasons, while Panhandle contends that, even though the instant order is set aside, the Commission should be free to maintain the status quo. Cf. American Broadcasting Co. v. Federal Communications Comm., 1951, 89 U.S. App.D.C. 298, 307, 191 F.2d 492, 502; Greensboro-High Point Airport Authority v. Civil Aeronautics Board, 1956, 97 U.S.App.D.C. 358, 363, 231 F.2d 517, 522.

Ordinarily, Michigan Consolidated would be entitled to retain the gas until it is abandoned by a valid order of the Commission. In allowing the abandonment to take effect, we cautioned the parties that they “acted at their own risk.” 5 There is no reason apparent to us why the gas should not be returned to Michigan Consolidated pending final approval of an abandonment. But, as a court we are not equipped to allocate gas between competing parties. We are not aware, for instance, of all the physical, financial and equitable considerations which may affect the interest of those the Act was intended to protect — the ultimate gas consuming public. 6 Hence we cannot assess where the balance of hardship would lie if the gas is, or is not, returned to Michigan Consolidated pending final Commission determination of the abandonment. To afford the Commission an opportunity to make such a determination, we will vacate the Commission’s order of distribution and remand the case for this purpose. We think that the Commission will be free, upon such a determination, to take action which includes, but need not be limited to, the following: (1) maintaining the status quo; (2) returning all of the gas to Michigan Consolidated; or (3) ordering some division of the gas between Michigan Consolidated and Panhandle, such as the one suggested by Michigan Consolidated’s settlement proposal. Michigan Consolidated’s legitimate interest in having the Commission reach such determination “with all deliberate speed” 7 is adequately protected by its right to seek mandamus.

It is unnecessary to discuss petitioner’s other contentions concerning the designation of a new hearing examiner, and its right to intervene in the hearing insofar as it pertained to the abandonment gas. 8

2. The 80,000 Mcf: Michigan Consolidated has also sought review of the Commission’s orders (1) excluding it from the proceedings concerning this expansion gas, and (2) authorizing the distribution of the gas to East Ohio and Panhandle’s other resale customers. (Michigan Consolidated urges no objections to the authorization of this increased capacity.) Only the order denying intervention is properly before us. Public Service Comm, of New York v. Federal Power Comm., No. 15365, - U.S.App. D.C.-,-F.2d-decided April 28, 1960.

The Commission denied intervention on the grounds that: (1) Michigan Consolidated is not “an ‘existing utility customer’ of Panhandle,” (2) the public interest would not be served since Michigan Consolidated has an adequate supply of gas, and (3) Michigan Consolidated will suffer no immediate economic injury through competition with Panhandle for industrial markets since Panhandle will have to seek Commission approval for any such sale. In its petition for rehearing, Michigan Consolidated asserted that the Commission’s ruling *858 was in error because (1) the possibilities of competition entitled it to intervene as of right, and (2) intervention was necessary to protect its right of review in No. 14975.

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Michigan Consolidated Gas Company, a Corporation v. Federal Power Commission, Panhandle Eastern Pipe Line Company, East Ohio Gas Company, Intervenors, 282 F.2d 854, 108 U.S. App. D.C. 371, 1960 U.S. App. LEXIS 4048 (D.C. Cir. 1960).

282 F.2d 854 (Michigan Consolidated Gas Company, a Corporation v. Federal Power Commission, Panhandle Eastern Pipe Line Company, East Ohio Gas Company, Intervenors) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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