People of the State of California and Public Utilities Commission of the State of California v. Federal Power Commission, Southern California Gas Company and Southern Counties Gas Company of California v. Federal Power Commission

353 F.2d 16, 24 Oil & Gas Rep. 211, 1965 U.S. App. LEXIS 4020
CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 9, 1965
Docket19664_1
StatusPublished
Cited by13 cases

This text of 353 F.2d 16 (People of the State of California and Public Utilities Commission of the State of California v. Federal Power Commission, Southern California Gas Company and Southern Counties Gas Company of California v. Federal Power Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People of the State of California and Public Utilities Commission of the State of California v. Federal Power Commission, Southern California Gas Company and Southern Counties Gas Company of California v. Federal Power Commission, 353 F.2d 16, 24 Oil & Gas Rep. 211, 1965 U.S. App. LEXIS 4020 (9th Cir. 1965).

Opinion

353 F.2d 16

PEOPLE OF the STATE OF CALIFORNIA and Public Utilities Commission of the State of California, Petitioners,
v.
FEDERAL POWER COMMISSION, Respondent.
SOUTHERN CALIFORNIA GAS COMPANY and Southern Counties Gas Company of California, Petitioners,
v.
FEDERAL POWER COMMISSION, Respondent.

No. 19647.

No. 19664.

United States Court of Appeals Ninth Circuit.

November 9, 1965.

Richard E. Tuttle, Chief Counsel, J. Calvin Simpson, Senior Counsel, John T. Murphy, Associate Counsel, San Francisco, Cal., for petitioners State of California and P. U. C. of California.

Richard A. Solomon, Gen. Counsel, Howard E. Wahrenbrock, Solicitor, Robert L. Russell, Asst. Gen. Counsel, Leonard Poryles, atty., all with Fed. Power Comm., Washington, D. C., for respondent Federal Power Comm.

Homer J. Penn, Houston, Tex., W. T. Kilbourne, II, Washington, D. C., for intervenor Superior Oil Co.

Oliver L. Stone, Thomas G. Johnson, New York City, for intervenor Shell Oil Co.

Jessee H. Foster, Jr., Albert C. McClain, Houston, Tex., for intervenor Humble Oil & Refining Co.

John Ormasa, Richmond, Cal., K. R. Edsall, Milford Springer, Robert M. Olson, Los Angeles, Cal., J. David Mann, Jr., John E. Holtzinger, Jr., Frederick Moring, Morgan, Lewis & Bockius, Washington, D. C., for petitioners Southern California Gas Co. and Southern Counties Gas Co. of California.

Before MERRILL and DUNIWAY, Circuit Judges, and MATHES, District Judge.

DUNIWAY, Circuit Judge:

This case arises from the grant by the Federal Power Commission of a certificate of public convenience and necessity to certain producers of natural gas, pursuant to section 7(e) of the Natural Gas Act, 15 U.S.C. § 717f(e), which provides in pertinent part:

[A] certificate shall be issued to any qualified applicant therefor * * if it is found that * * * the proposed * * * sale * * * is or will be required by the present or future public convenience and necessity; otherwise such application shall be denied. The Commission shall have the power to attach to the issuance of the certificate and to the exercise of the rights granted thereunder such reasonable terms and conditions as the public convenience and necessity may require.

The essential facts, summarily stated, follow. Three gas producers — Humble Oil & Ref. Co., Shell Oil Co., and Superior Oil Co. — brought gas wells into production in a formerly undeveloped portion of the "Four Corners" producing area, a region encompassing contiguous portions of northeast Arizona, northwest New Mexico, southwest Colorado, and southeast Utah. They applied for permanent certificates of public convenience and necessity under section 7(e), which would allow them to sell the gas in interstate commerce at their contract rate of 17.7 cents per thousand cubic feet (Mcf.); this price is identical with that approved for a nearby field in the prior separate "Aneth" certification proceeding. (El Paso Natural Gas Co., 1960, 23 F.P.C. 370, aff'd sub nom. Texaco, Inc. v. FPC, 5 Cir., 1961, 290 F.2d 149.)

The Trial Examiner found that the certificate should be issued on condition that the price not exceed 13 cents per Mcf., which he found to be the prevailing price in the San Juan Basin of New Mexico, an older producing area about 75 miles away which had served as the point of reference for the certificated price in Aneth. The Commission reversed in a 3-2 decision, finding that the gas subject to the instant sale was more similar to Aneth gas than to San Juan gas and that the price line to be observed was that of Aneth rather than that of San Juan. The State of California and two California gas distributing companies (Southern California Gas Company and Southern Counties Gas Company of California), intervenors in the original proceeding, now petition this court to review and set aside the Commission's resulting order which granted the certificate without price condition.

The principal argument seems to be that the Commission erred in granting an unconditioned certificate because the certificated price was established by reference to a prior "isolated and insignificant" sale at a now "discredited" price. Two of the producers, Superior and Humble, assert that this court has no jurisdiction to hear a petition for review by the intervenors because (1) respondents failed to present their objections in their Applications for Rehearing and consequently are barred from asserting them here, and (2) they were not "aggrieved" within the meaning of section 19 of the Act (15 U.S.C. § 717r).

1. JURISDICTION.1

A. Waiver of objection by failure to urge it in application for rehearing.

Superior asserts that "the actual contentions on review" are "charges of abuse of discretion, arbitrary and capricious action and unreasonableness by the Commission in its decision making process" and that the petitioners failed to raise these contentions in its Application for Rehearing, and concludes that they therefore cannot be raised in this petition for review. In support it cites many cases and section 19 of the Natural Gas Act, which provides in pertinent part that:

"[§ 19(a)] Any person * * * aggrieved by an order issued by the Commission * * * may apply for a rehearing * * *. The application for rehearing shall set forth specifically the ground or grounds upon which such application is based. * * * No proceeding to review any order of the Commission shall be brought by any person unless such person shall have made application to the Commission for a rehearing thereon. * * *"

"[§ 19(b)] Any party * * * aggrieved * * * may obtain a review of such order in the circuit court of appeals of the United States * * *. No objection to the order of the Commission shall be considered by the court unless such objection shall have been urged before the Commission in the application for rehearing unless there is reasonable ground for failure so to do. * * *"

The argument sacrifices substance to form, and to a form created by respondents rather than by the statute. The errors asserted here were urged in the application for rehearing. The Commission was not misled; its order denying rehearing is responsive to the errors petitioners assert. Hence the purpose of the rule is satisfied. Cf. City of Pittsburgh v. FPC, 1956, 99 U.S.App.D.C. 113, 237 F.2d 741. Respondents term those allegations of error "charges of abuse of discretion, arbitrary and capricious action and unreasonableness" and then claim that because petitioners did not, by proper phrasing, anticipate this magical conversion they are raising new objections which, under section 19, are inadmissible. This is a bootstrap argument supported neither by analysis of the actual language in the applications for rehearing nor by the facts or holdings of decisional law.2

B. Are petitioners "aggrieved" under section 19?

Superior makes a de minimis

Free access — add to your briefcase to read the full text and ask questions with AI

Related

West Virginia Public Services Commission v. United States Department of Energy, Economic Regulatory Administration, Southern Natural Gas Co., Etc., Columbia Lng Corp., Etc., Ugi Corporation, Pennsylvania Gas and Water Co., El Paso Algeria Co., Consolidated System Lngcompany, Dayton Power and Light Company, Columbia Gas Distribution Companies,etc.,georgia Industrial Gas Group and General Motors Corporation, Public Servicecommission of the State of New York, Atlanta Gas Light Company, Intervenors. Georgia Industrial Group and General Motors Corporation v. Department of Energy, Charles Duncan, Secretary of Energy, and Economicregulatory Administration, Hazel Rollins, Administrator, Southern Natural Gas Co., Etc., Ugi Corporation, Etc., Columbia Lngcorporation, Etc., Pennsylvania Gas and Water Co., El Paso Algeria Corporation,washington Gas Light Co., People's Counsel of Maryland, Consolidated System Lngco., Dayton Powerand Light Co., Columbia Gas Distribution Companies, Alabama Gascorporation, Cincinnati Gas & Electric Co., Intervenors. Consumer Federation of America and Consumer Energy Council of America v. Economic Regulatory Administration and Department of Energy, Southern Natural Gas Co., Etc., Ugi Corporation, Columbia Lng Corporation,etc., Pennsylvania Gas and Water Company, Dayton Power and Light Co., El Pasoalgeria Corporation, Consolidated System Lng Co., Washington Gas Light Co.,people's Counselof Maryland, Chattanooga Gas Company, Columbia Gas Distribution Companies,etc., Alabama Gas Corporation, Cincinnati Gas & Electric Co.,georgia Industrial Gas Group and General Motors Corporation, Public Servicecommission of Thestate of New York, Atlanta Gas Light Company, Gas Light Company of Columbus,intervenors
681 F.2d 847 (D.C. Circuit, 1982)
Continental Oil Co. v. Federal Power Commission
378 F.2d 510 (Fifth Circuit, 1967)
Sunray DX Oil Co. v. Federal Power Commission
370 F.2d 181 (Tenth Circuit, 1966)
United States Court of Appeals Tenth Circuit
370 F.2d 181 (Tenth Circuit, 1966)

Cite This Page — Counsel Stack

Bluebook (online)
353 F.2d 16, 24 Oil & Gas Rep. 211, 1965 U.S. App. LEXIS 4020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-of-the-state-of-california-and-public-utilities-commission-of-the-ca9-1965.