Midwestern Gas Transmission Co. v. Federal Energy Regulatory Commission

589 F.2d 603, 191 U.S. App. D.C. 80
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 2, 1978
DocketNos. 78-1753, 78-1775 and 78-1789
StatusPublished
Cited by11 cases

This text of 589 F.2d 603 (Midwestern Gas Transmission Co. 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
Midwestern Gas Transmission Co. v. Federal Energy Regulatory Commission, 589 F.2d 603, 191 U.S. App. D.C. 80 (D.C. Cir. 1978).

Opinion

Opinion PER CURIAM.

PER CURIAM:

This case presents both a complaint and petitions for review of three orders of the Federal Energy Regulatory Commission (FERC or Commission). Acting under provisions of the judicially untested Alaska Natural Gas Transportation Act (ANGTA),1 and the Natural Gas Act,2 the Commission conditionally authorized two contracts for the importation of Canadian gas into the United States, and denied petitions for reconsideration and clarification of the conditional authorization order.

Petitioner/complainant Midwestern Gas Transmission Company (Midwestern) and petitioner- Michigan Wisconsin Pipe Line Company (Michigan Wisconsin) challenge the FERC’s orders by arguing that: 1) the Commission had no authority to issue the conditional authorization under the ANGTA or the Natural Gas Act; 2) the Commission’s record does not support its decisions; 3) the contracts in question violate the United States antitrust laws and the ANG-TA; and 4) the FERC violated constitutional and statutory rights by refusing to hold a hearing on these matters. We affirm the Commission’s assumption of authority under the ANGTA and the Natural Gas Act, and dismiss several challenges to the merits of the Commission’s decision as not ripe. Our jurisdiction is solely under the limited judicial review section of the ANGTA, and we thus dismiss the petitions filed under the Natural Gas Act.

We do review the Commission’s failure to hold hearings under the Natural Gas Act, finding the action within statutory and constitutional bounds.

[86]*86At this point, for the convenience of the reader, we provide an outline of the opinion following:

Page

I.BACKGROUND ............. 609

II. THE COMMISSION’S ORDERS UNDER REVIEW ........... 612

III. FERC AUTHORITY UNDER THE ANGTA AND THE NATURAL GAS ACT ............ 614

A. Authority Under the ANGTA 614

B. Authority Under the Natural Gas Act................. 616

•IV. RIPENESS ................. 617

A. Fitness for Judicial Decision 618
1. Decision on Contract’s Resale Restriction .....618

2. Public Interest Determination ............... 619

3. Priorities and Lack of Competition .......... 620

4. Denial of Hearing .....621

5. Conclusion on Fitness for Judicial Decision ...... 621

B. Hardship to the Parties .... 622

1. Substantive Determinations ................ 622

2. Decision Not to Hold Hearings ............ 624

C. Conclusions on Ripeness .... 625
V. REVIEW OF THE DENIAL OF A HEARING PRIOR TO CONDITIONAL AUTHORIZATION 625
A. Standard of Review....... 625
B. Right to Hearing......... 626
VI. CONCLUSION .............. 627

The ANGTA provides that this Court “render its decision relative to any claim within 90 days from the date such claim is brought unless such court determines that a longer period of time is required to satisfy requirements of the United States Constitution.”3 Midwestern brought the present claim on August 4, 1978, and in attempting to render a decision by November 2, this case was placed on an expedited briefing and argument schedule.

I. BACKGROUND

In 1968 the largest single discovery of oil and gas ever made on the continent of North America was made at Prudhoe Bay on the North Slope of Alaska.4 In view of the severe shortage of natural gas in this nation, it became critically important to develop an economical transportation system for bringing Alaska natural gas to the lower 48 states.5 Several companies therefore applied to the Federal Power Commission (FPC)6 for authority to build a pipeline to transport the gas. In March 1974 a consortium of gas companies, the Arctic gas pipeline consortium, applied to the FPC for authorization to build a pipeline through Canada’s MacKenzie Delta area, across Alberta, and by two branches into the United States. In September 1974 El Paso Alaska Company proposed to transport Alaska gas overland to the south of Alaska, and then by tanker to the West Coast. Finally, in [87]*87July 1976, Alcan Pipeline Company7 proposed a pipeline largely paralleling existing pipeline and highway corridors through Alaska and Canada, and by two branches into the United States.8

While the FPC was holding hearings on these three proposals, Congress enacted the ANGTA.9 Section 3 of the ANGTA declares the Act’s purpose as follows:

to provide the means for making a sound decision as to the selection of a transportation system for delivery of Alaska natural gas to the contiguous States for construction and initial operation by providing for the participation of the President and the Congress in the selection process, and, if such a system is approved under this chapter, to expedite its construction and initial operation by (1) limiting the jurisdiction of the courts to review the actions of Federal officers or agencies taken pursuant to the direction and authority of this chapter, and (2) permitting the limitation of administrative procedures and effecting the limitation of judicial procedures related to such actions. To accomplish this purpose it is the intent of the Congress to exercise its constitutional powers to the fullest extent in the authorizations and directions herein made, and particularly with respect to the limitation of judicial review of actions of Federal officers or agencies taken pursuant thereto.10

Congress established in this Act a five-part procedural framework to expedite a final decision on an Alaska natural gas transportation system (ANGTS): 1) an FPC recommendation to the President of a specific transportation system by May 1, 1977,11 and comments by federal agencies and others;12 2) a presidential decision on the best possible ANGTS;13 3) expedited congressional consideration of the President’s selection;14 4) prompt handling of all federal authorizations “necessary or related to the construction and initial operation of” the ANGTS;15 and 5) limited judicial review of any agency action to questions of agency violation of constitutional rights or statutory authority.16

Following passage of the ANGTA, the FPC completed its proceedings on the three Alaska natural gas transportation proposals but was unable to agree on one proposal. At that time there were only four Commissioners at the agency, and they split their votes evenly between the two overland proposals.

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Bluebook (online)
589 F.2d 603, 191 U.S. App. D.C. 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midwestern-gas-transmission-co-v-federal-energy-regulatory-commission-cadc-1978.