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Fifth circuit expands not substantially developed exception to FERC jurisdiction under the Natural Gas Act of 1938

Journal Article · · Nat. Resour. J.; (United States)
OSTI ID:6411939
The El Paso Natural Gas Co. v. Sun Oil Co. suit found that the Federal Energy Regulatory Commission (FERC) does not have jurisdiction over the sale of leases covering proven reserves of natural gas that lack the imminent ability to produce in commercial quantities. A review of the case and an analysis of the Court's decision concludes that it seems more logical to define the limits of the production and gathering exception in terms of commerce clause and federalism rather than in terms of the number of wells drilled at the time of sale. FERC's jurisdiction under the Natural Gas Act ought to be defined to reach wherever the state's regulatory jurisdiction cannot. Such an interpretation of FERC jurisdiction would further the purpose of the Natural Gas Act, which is to protect consumers from exploitation by natural gas suppliers by regulating the price at which large quantities of gas are transported and sold in interstate commerce.
OSTI ID:
6411939
Journal Information:
Nat. Resour. J.; (United States), Journal Name: Nat. Resour. J.; (United States) Vol. 25:3; ISSN NRJOA
Country of Publication:
United States
Language:
English