United States Supreme Court Cases & Opinions

U.S. Supreme Court

Interstate Nat. Gas Co., Inc. v. FPC, 331 U.S. 682 (1947)

Interstate Natural Gas Co., Inc. v. Federal Power Commission

No. 733

Argued May 2, 1947

Decided June 16, 1947

331 U.S. 682

Syllabus

A natural gas company subject to the Natural Gas Act of 1938, 52 Stat. 821, produces some gas and purchases some gas, which it mingles and conducts through a system of field, branch, and main lines (all within a single state) into its main trunk line, whence it is sold to interstate pipeline companies for transportation, resale, and ultimate consumption in other states. The entire movement from the wells to the purchasing companies, through their compression pumps, and across the state lines is a continuous process without interruption for storage, processing or any other purpose.

Held: the Federal Power Commission has jurisdiction under § 1(b) of the Natural Gas Act to regulate such sales. Pp. 331 U. S. 686-693.

(a) Such sales are "in interstate commerce" within the meaning of § 1(b) of the Natural Gas Act. Pp. 331 U. S. 687-689.

(b) They are not within the clause of § 1(b), which excepts "the production or gathering" of natural gas from the Commission's regulatory jurisdiction. Pp. 331 U. S. 689-693.

156 F.2d 949 affirmed.

Page 331 U. S. 683

The Federal Power Commission issued an order under § 5(a) of the Natural Gas Act of 1938, 52 Stat. 821, requiring petitioner to effect substantial rate reductions in certain of its sales of natural gas and to file new schedules of rates and charges. 3 F.P.C. 416. The Circuit Court of Appeals denied a review. 156 F.2d 949. This Court granted certiorari limited to the question of the Commission's jurisdiction. 330 U.S. 852. Affirmed, p. 331 U. S. 693.