Williams Gas Processing-Gulf Coast Co. v. Federal Energy Regulatory Commission

145 F.3d 377, 330 U.S. App. D.C. 250, 141 Oil & Gas Rep. 219, 1998 U.S. App. LEXIS 11917, 1998 WL 295611
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 9, 1998
Docket97-1182
StatusPublished

This text of 145 F.3d 377 (Williams Gas Processing-Gulf Coast 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
Williams Gas Processing-Gulf Coast Co. v. Federal Energy Regulatory Commission, 145 F.3d 377, 330 U.S. App. D.C. 250, 141 Oil & Gas Rep. 219, 1998 U.S. App. LEXIS 11917, 1998 WL 295611 (D.C. Cir. 1998).

Opinion

WILLIAMS, Circuit Judge: ■

Shell Gas Pipeline Company proposed to build some natural gas facilities in the Gulf of Mexico off the Louisiana Coast, to be known as the Garden Banks Gathering System. In 1995 it filed a petition with the Federal Energy Regulatory Commission requesting that they be classified as “gathering” facilities, and therefore, under § 1(b) of the Natural Gas Act, 15 U.S.C. § 717(b), free of FERC’s regulatory jurisdiction. The Commission granted the request for some of the facilities, but decided that a 50-mile long, 30-inch wide line, the Enchilada Pipeline, would be a gas “transportation” facility rather than a gathering facility, and so would be subject to its jurisdiction. . Shell Gas Pipeline Co., 74 FERC ¶ 61,277 (1996) (“Order”).' Shell re *378 sponded to the Order in two ways. First, it filed under § 7(c) of the Act for a certificate authorizing construction and operation of the Enchilada line, which it received and accepted under protest. Accordingly it started construction. Meanwhile it sought rehearing of the adverse classification decision, but . the Commission denied rehearing. Shell Gas Pipeline Co., 78 FERC ¶ 61,286 (1997) (“Order on Rehearing”). See id. at 62,245 (describing Shell’s request for certification, grant of the request, and Shell’s acceptance under protest). Shell has sought no judicial relief from FERC’s classification decision.

Williams Gas Processing, however, which had participated in the initial classification proceeding and the rehearing petition, says that it is a “person aggrieved” by the Orders within the meaning of § 19(b) of the Act, 15 U.S.C. § 717r(b), and seeks review. It has pending before the Commission a petition seeking re-classification as non-jurisdictional certain facilities owned by its affiliate, Transcontinental Gas Pipe Line Corp. (“Transco”), which it proposes to acquire from Transco in a “spindown” transaction. The facilities are evidently similar to the Enchilada and are located in its vicinity. Although Williams regards the precedential effect of the Enchilada classification as injurious, it does not push that as its main injury, as it recognizes our long line of decisions rejecting claims of standing based merely on supposed adverse precedential effect. If the Commission applies the Shell decision as a precedent in a way adverse to Williams’s application, Williams will be free to try to convince a court of the error in the principle applied. See, e.g., Sea-Land Service, Inc. v. Department of Transportation, 137 F.3d 640, 647- 49 (D.C.Cir.1998).

But Williams names an independent source of injury. It points to Commission decisions suggesting that the classification of facilities in the Outer Continental Shelf (“OCS”) as transportation or gathering may be affected by the character of the lines in the vicinity, so that classification of a line as transportation is more likely if the neighboring lines are so classified. The Order here, it says, is . yet another in a series of decisions that have too readily classified OCS facilities as jurisdictional; because Shell’s Enchilada line is .near the Transco facilities, the Order increases the likelihood that the Commission will reject its efforts to reclassify the latter as gathering. It thus asserts a novel path-dependency theory, under which the contested decision is said to injure the protester by changing the context in which its own conduct will be judged, independent of any prec-edential effect. Although we are ready to assume the theoretical soundness of Williams’s claim, we find that Williams has failed to establish in this case the kind of effects that are minimally necessary for it to be aggrieved under the theory.

Williams’s path-dependency theory turns on two propositions: first, that proximity to interstate transportation facilities plays a large role in the Commission’s classification principles, and second, that the addition of the Enchilada line to the facilities already so classified materially alters the odds of Tran-sco’s own facilities being classified as jurisdictional. There are weaknesses in both propositions.

We start with the second. The briefs do not point to material in the record establishing the exact geographic relation between the Enchilada and the Transco facilities, so we asked at oral argument whether, given the pre-existing lines classified as transportation rather than gathering, the Enchilada’s classification critically changed the chances of Williams’s reclassification petition. Williams’s counsel acknowledged that it did not. Moreover, counsel for the Commission indicated (and Williams’s counsel did not deny) that if the propriety of a prior classification became pertinent in the Transco case, the Commission would entertain the claim that it had misclassified the relevant facilities. Accordingly, even if Commission precedent assigned a very large role to the status of adjacent facilities, it is not apparent that Williams has shown the sort of serious impact on its casé that would constitute the sort of injury — “actual or imminent, not conjectural or hypothetical,” Lujan v. Defenders of Wildlife, 504 U.S. 555, 560, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992)(internal quotations omitted) — that amounts to aggrievement.

*379 Moreover, the Commission does not appear to give surrounding classifications the pre-eminence that Williams suggests. In determining the jurisdictional status of pipelines, it applies a “primary function” test, looking to the role the pipeline plays in the natural gas network, i.e., whether it serves primarily to gather gas from the wellhead, or to transport gas already gathered. It has said that the relevant factors include: (1) the length and diameter of the line, (2) the extension of the line beyond the .central point in the field, (3) the line’s geographic configuration, (4) the location of compressors and processing plants, (5) the location of wells along all or part of the facility, and (6) the operating pressure of the lines. Order, 74 FERC at 61,895-96 & n. 23 (citing Farmland Indus., Inc., 23 FERC ¶ 61,063, at 61,143 (1983)).

For offshore facilities the Commission has taken the view that it must adjust its application of these criteria. Indicia such as processor locations and pipeline lengths may be misleading, since the processing tends to take place onshore after long trips from the wellhead- — increasingly long trips, as technological advances make possible more distant and deeper exploitation. Thus, FERC has modified the primary function test in two significant ways. First, it decided in Amerada Hess, 52 FERC ¶ 61,268, at 61,986 (1991), that the OCS conditions justify treating as gathering facilities pipelines of greater length and diameter than would be the case onshore:

[A] relatively long pipeline on the OCS may be consistent with a primary function of ‘gathering or production’ whereas an onshore pipeline of similar length would not.

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Related

Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)

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Bluebook (online)
145 F.3d 377, 330 U.S. App. D.C. 250, 141 Oil & Gas Rep. 219, 1998 U.S. App. LEXIS 11917, 1998 WL 295611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-gas-processing-gulf-coast-co-v-federal-energy-regulatory-cadc-1998.