North Carolina Utilities Commission v. Federal Energy Regulatory Commission

653 F.2d 655, 209 U.S. App. D.C. 400, 1981 U.S. App. LEXIS 13113
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 20, 1981
Docket80-1219
StatusPublished

This text of 653 F.2d 655 (North Carolina Utilities Commission 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
North Carolina Utilities Commission v. Federal Energy Regulatory Commission, 653 F.2d 655, 209 U.S. App. D.C. 400, 1981 U.S. App. LEXIS 13113 (D.C. Cir. 1981).

Opinion

653 F.2d 655

209 U.S.App.D.C. 400

NORTH CAROLINA UTILITIES COMMISSION, Petitioner,
v.
FEDERAL ENERGY REGULATORY COMMISSION, Respondent.
Public Service Electric and Gas Company, Transcontinental
Gas Pipe Line Corporation, Kerr-McGee Corporation, Mobil Oil
Exploration, et al., Farmers Chemical Association, Inc.,
Washington Gas Light Company, General Motors Corporation,
Brooklyn Union Gas Company, Intervenors.

No. 80-1219.

United States Court of Appeals,
District of Columbia Circuit.

Argued April 7, 1981.
Decided May 20, 1981.

Morton L. Simons with whom Barbara M. Simons, Washington, D.C., was on the brief for petitioner.

Auburn L. Mitchell, Atty., Federal Energy Regulatory Commission, Washington, D.C., for respondent. Robert R. Nordhaus, Gen. Counsel, Jerome Nelson, Sol. and A. Karen Hill, Atty., Federal Energy Regulatory Commission, Washington, D.C., were on the brief for respondent.

Robert G. Hardy, Washington, D.C., with whom Thomas F. Ryan, Jr., David J. Evans and Joseph A. Cannon, Washington, D.C., were on the brief for intervenor, Transcontinental Gas Pipe Line Corp.

Robert D. Haworth, Letitia Taitte, Houston, Tex., Carroll L. Gilliam, Philip R. Ehrenkranz and Craig W. Hulvey, Washington, D.C., were on the brief for intervenors, Mobil Oil Exploration, et al.

Richard G. Harris, Derrill M. Cody, Oklahoma City, Okl., William J. Grove, Sr., Carroll L. Gilliam and Jon L. Brunenkant, Washington, D.C., were on the brief for intervenor, Kerr-McGee Corp.

James R. Lacey, Glen Ridge, N.J., entered an appearance for intervenor, Public Service Electric and Gas Company.

Stephen A. Herman, Trenton, N.J., entered an appearance for intervenor, Farmers Chemical Association, Inc.

Susan A. Low and Gordon M. Grant, Washington, D.C., entered an appearance for intervenor, Washington Gas Light Co.

Edward J. Grenier, Jr., Richard P. Noland, Richard A. Oliver, Washington, D.C., and Julius Jay Hollis, Detroit, Mich., entered appearances for intervenor, General Motors Corp.

Joseph Paul Stevens, Brooklyn, N.Y., entered an appearance for intervenor, Brooklyn Union Gas Co.

Before WALD, MIKVA and EDWARDS, Circuit Judges.

Opinion for the Court filed by Circuit Judge WALD.

WALD, Circuit Judge:

Petitioner North Carolina Utilities Commission ("NCUC") seeks to vacate, or in the alternative to reverse and remand for further findings, an order of the Federal Energy Regulatory Commission ("FERC" or "the Commission")1 affirming the Initial Decision of the Administrative Law Judge ("Initial Decision")2 in the proceedings denominated as FERC Docket No. RP75-51. This order (hereinafter referred to as "RP75-51 Order") terminated an investigation into the causes of, and possible solutions to, curtailments of natural gas deliveries suffered by customers of Transcontinental Gas Pipe Line Corporation ("Transco") during the 1974-75 winter season, and approved several factual findings reached by the Administrative Law Judge ("ALJ") after consideration of the testimony and exhibits presented to him. Because we find petitioner lacks standing to bring this suit and because the decision to terminate this investigation instituted pursuant to section 14 of the Natural Gas Act ("NGA" or "the Act"), 15 U.S.C. § 717m(a), is committed to agency discretion, we dismiss this case for lack of jurisdiction.

I. THE FACTS

Transco, a major interstate pipeline, purchases, transports and sells natural gas to distributors in 11 states, including North Carolina. At the time of the events which gave rise to this action, its principal sources of supply lay in the outer continental shelf, an area of small, fragmented reservoirs with relatively short productive lives. During the summer of 1974, it became obvious that Transco's supplies from these sources would fall far short of its original estimates, necessitating curtailments in planned deliveries to its customers. Accordingly, Transco issued its first curtailment plan in September, 1974, projecting a shortfall of supply over contract demand of 28 percent. Transco continued to revise its estimates of available gas supplies downwards in the fall, and contemporaneously issued a series of revisions to its original curtailment projections, increasing projected non-delivery by 30 Bcf.,3 between October and December of 1974.

On January 8, 1975, the Federal Power Commission ("FPC")4 invoked its discretionary authority under section 14 of the Act5 to investigate Transco's supply shortage. In its Order Instituting Investigation and Order to Show Cause, Setting Hearing, and Establishing Procedures ("Investigatory Order I"),6 the FPC outlined five areas of inquiry: (1) "the circumstances for the increased curtailment," (2) "a determination as to the current projections of curtailment for said system," (3) "the adequacy of the gas reserves held or controlled by (Transco)," (4) "the change, if any, in the level of production from such reserves, (and) the effect on deliverability of gas from reserves affected by adverse weather" and (5) "the actions taken to fully reactivate the production from those reserves."7 Transco and its principal suppliers presented evidence on these matters at FPC hearings held between January and March, 1975, at which time the proceedings were suspended to allow the parties to obtain additional information.

In the spring of 1975, Transco again revised its deliverability projection, this time upward to include 18 Bcf. of gas which it had previously declared unavailable. On July 1, 1975, the FPC issued an Order Amending Prior Order and Broadening Scope of Investigation ("Investigatory Order II")8 to enlarge the scope of the investigation. The additional areas to be explored were "all facts bearing upon the alleged need for any curtailment by Transco to its customers and also to Transco's efforts to improve deliverability upon its system consistent with its obligations to provide adequate and reliable service to its customers," as well as "all facts bearing upon (1) the enforcement of the provisions of the Natural Gas Act or any rule, regulation, or order thereunder; and (2) remedial measures to be directed by the Commission."9 In the same order, the FPC removed from the scope of the investigation two of Transco's suppliers, Mitchell Energy and Development Corporation ("Mitchell") and Cities Service Oil Corporation ("Cities Service") pursuant to the request of a Congressional subcommittee conducting a related investigation.10 In its Order Amending Order and Requiring Report ("Investigatory Order IV"),11

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653 F.2d 655, 209 U.S. App. D.C. 400, 1981 U.S. App. LEXIS 13113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-carolina-utilities-commission-v-federal-energy-regulatory-commission-cadc-1981.