Wilcox v. Illinois Commerce Commission

178 N.E.2d 873, 23 Ill. 2d 432
CourtIllinois Supreme Court
DecidedJanuary 17, 1962
Docket36473
StatusPublished
Cited by8 cases

This text of 178 N.E.2d 873 (Wilcox v. Illinois Commerce Commission) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilcox v. Illinois Commerce Commission, 178 N.E.2d 873, 23 Ill. 2d 432 (Ill. 1962).

Opinion

Mr. Justice Solfisburg

delivered the opinion of the court:

This is an appeal by plaintiffs from an order of the circuit court of Kankakee County, affirming an order of the Illinois Commerce Commission, entered pursuant to the “Gas Storage Act” of 1951. (Ill. Rev. Stat. 1959, chap. 104, par. 1 et seq.) Under that act a corporation engaged in the distribution, transportation or storage of natural gas which is intended in whole or in part, for ultimate distribution to the public in Illinois, may have the right of eminent domain, provided that such corporation “is regulated or subject to regulation under either the laws of the State of Illinois or the laws of the United States.” However, such right of eminent domain for the acquisition of property for the underground storage of gas cannot be exercised until such corporation shall have obtained an order of the Illinois Commerce Commission approving the proposed storage project. The act provides for notification to land owners, whose property rights are affected and requires the Commerce Commission to make certain findings with respect to the project and the order must contain certain restrictions and conditions which reasonably protect private property, the rights of owners of the lands lying within the storage area and any public resources of the State.

Pursuant to the Gas Storage Act, the Natural Gas Storage Company of Illinois, an Illinois corporation, filed an application and obtained an order of the Commerce Commission on May 21, 1952, approving a storage project in the Ironton-Galesville geological formation, in an area at Herscher, in Kankakee County, Illinois. Under that order and by virtue of voluntary grants or easements which the Natural Gas Storage Company had obtained from the land owners, a storage field was developed in the Ironton-Galesville reservoir. Apparently no appeal or objection was taken from that 1952 order. On November 28, 1958, Natural Gas Storage Company filed a supplemental application with the Commerce Commission for the approval of an extension of its storage at Herscher to include the storage of gas in the Mt. Simon formation, a geological stratum lying about 600 feet below the Ironton-Galesville and more than 2,000 feet below the surface of the earth. It is from the order of the Commerce Commission approving the Mt. Simon project that this appeal is taken.

It is the theory of plaintiffs that the Illinois Commerce Commission did not have the jurisdiction to enter said supplemental order; that the order is void and should be set aside; that the supplemental order is not supported by record facts nor arfe the findings of said order supported by the record; that the storage of gas is a local project not contemplated by the Federal “Natural Gas Storage Act;” and that regulation by a competent administrative agency is a prerequisite to an order of approval under said Illinois Storage Act; that public need for the proj ect is not shown by the record; and that the record fails to disclose a public use.

Prior to the application in 1952 for the Ironton-Galesville reservoir operation, Natural Gas Storage Company had obtained a certificate of public convenience and necessity from the Federal Power Commission to construct facilities and operate as a natural gas company for the transportation, storage and delivery of natural gas under the Natural Gas Act. (15 U.S.C.A. 717.) Similarly, prior to the Mt. Simon project, Natural Gas Storage Company obtained a certificate of public convenience and necessity from the Federal Power Commission authorizing the construction of facilities and development of a storage reservoir in that geological formation. The gas which Natural Gas Storage Company stores is received from interstate pipelines for the account of distributing companies in Illinois and Indiana.

We feel that the interstate character of the gas stored by Natural Gas Storage Company is clear. The movement of natural gas in interstate commerce does not cease its interstate journey merely because it passes into a State where it is finally consumed. (Federal Power Commission v. East Ohio Gas Co. 338 U.S. 464, 467.) While local distribution of interstate gas may be subject to State control, Pennsylvania Gas Co. v. Public Service Commission, 252 U.S. 23, 28, the wholesale distribution of interstate gas has always remained interstate in character. Illinois Natural Gas Co. v. Central Illinois Public Service Co. 314 U.S. 498, 508. The record shows that Natural Gas Storage Company delivers the stored gas to an interstate pipeline and, in that sense, is analogous, to a wholesale distributor. Likewise storing of gas does not change its interstate character. We said in Mississippi River Fuel Corp. v. Hoffman, 4 Ill.2d 468 at page 472: “Appellants devote a considerable part of their argument to a discussion of an attempt which is being made by appellee to create a gas storage field in Illinois in an exhausted gas field in Monroe County. It is enough to say that even if appellee had fully succeeded in this endeavor and if some of the gas sold to its industrial customers had for a time been held in storage in the places mentioned, it would not, in our opinion, detract in any way from the interstate character of the whole transaction.”

There is also no substantial question concerning the regulation of Natural Gas Storage Company by the Federal Power Commission under the “laws of the United States.” The tariffs of Natural Gas Storage Company are filed with and approved by, the Federal Power Commission; periodic reports are required by that Commission and the detailed certificates of public convenience and necessity issued to Natural Gas Storage Company by the Federal Power Commission clearly demonstrate that it is regulated under the federal law. Consequently, there is no justification for the plaintiffs’ contention of lack of jurisdiction in the Illinois Commerce Commission under the Gas Storage Act.

Therefore, we are of the opinion that the jurisdiction of the Illinois Commerce Commission was properly invoked for the approval of the project and the right to exercise eminent domain. No question is raised as to notice either by publication or by registered mail, to the land owners whose property is sought to be condemned.

Turning to the order of the Commerce Commission itself, we are of the opinion that it complies with the requirements of the Gas Storage Act. The Commerce Commission’s order not only contains specific findings on each of the statutory items, as well as the restrictive conditions of the statute, but is further supported by a recital of the case and the evidence. An examination of the latter discloses that there was much expert evidence produced as to the feasibility of the Mt. Simon formation for a gas storage project. Plaintiffs’ counsel admit the qualifications of Natural Gas Storage Company’s experts who testified in favor of the project. No contrary testimony was offered. Neither the Commerce Commission nor the court is required to ignore such expert testimony. It is the function of the Commerce Commission to use its expertise in the evalúation of such expert testimony and we cannot say that the Commission has failed in such appraisal.

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

Related

Gernand v. Illinois Commerce Commission
676 N.E.2d 1384 (Appellate Court of Illinois, 1997)
Gernand v. Illinois Commerce Comm'n
Appellate Court of Illinois, 1997
United Fuel Gas Company v. Battle
167 S.E.2d 890 (West Virginia Supreme Court, 1969)
Michigan Consolidated Gas Co. v. Austin Township
128 N.W.2d 491 (Michigan Supreme Court, 1964)
Canady v. Northern Illinois Gas Co.
193 N.E.2d 48 (Appellate Court of Illinois, 1963)
Peoples Gas Light & Coke Co. v. Buckles
182 N.E.2d 169 (Illinois Supreme Court, 1962)
Wilcox v. Natural Gas Storage Co.
182 N.E.2d 158 (Illinois Supreme Court, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
178 N.E.2d 873, 23 Ill. 2d 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilcox-v-illinois-commerce-commission-ill-1962.