A conflict in the circuits: The FERC's jurisdication over gathering rates

Journal Article · Wed Jan 01 04:00:00 EST 1992 · Energy Law Journal; (United States)

OSTI ID:6635928

There is a ripe debate about the extent of the Federal Energy Regulatory Commission's (FERC or Commission) jurisdiction over certain gas gathering rates. This issue will be examined by considering two recent cases and their differing analyses of section 1(b) of the Natural Gas Act (NGA), which defines the scope of authority granted by Congress to the Federal Power Commission. Section 1(b) of the NGA states: The provisions of this chapter shall apply to the transportation of natural gas in interstate commerce, to the sale in interstate commerce of natural gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use, and to natural-gas companies engaged in such transportation or sale, but shall not apply to any other transportation or sale of natural gas or to the local distribution of natural gas or to the facilities used for such distribution 2 or to the production or gathering of natural gas (emphasis added). Gathering is the act of transporting gas as it is collected from the wells, whether or not the movement is interstate. Gathering systems consist of pipeline and pumping units used to bring oil or gas from production leases by separate lines to a central point. Gathering can be performed by a producer, by a pipeline, or by an independent gathering company. The cases of Northwest Pipeline Corp. vs. FERC' and Northern Natural Gas Co. vs. FERC' were found to have the same common thread in the beginning of each suit, a challenge that a gathering charge was excessive. Each Circuit went in different directions in assessing the FERC's jurisdiction.

• OSTI ID: 6635928
• Journal Information: Energy Law Journal; (United States), Journal Name: Energy Law Journal; (United States) Vol. 13:2; ISSN 0270-9163; ISSN ELJOEA
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294003 -- Energy Planning & Policy-- Natural Gas
CONTRACTS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
LEASES
LEGAL ASPECTS
NATIONAL GOVERNMENT
NATIONAL ORGANIZATIONS
NATURAL GAS
PIPELINES
PRICING REGULATIONS
REGULATIONS
STATE GOVERNMENT
US DOE
US FEDERAL POWER COMMISSION
US FERC
US ORGANIZATIONS