MEMORANDUM OPINION AND ORDER
Eighteen municipalities 1 sued Exxon Mobil Corporation, BP America, Inc., Coral Energy Resources, L.P., ChevronTexaco Corporation, and ConocoPhillips Corporation for violating the antitrust laws by agreeing to artificially inflate the price of natural gas; monopolizing, attempting to monopolize, and conspiring to monopolize; and engaging in price discrimination. The defendants moved to dismiss the amended complaint for lack of standing, for lack of personal jurisdiction, for failure to state a claim as to all claims, and because defendants are protected under the Noerr/Pen-nington doctrine. The plaintiffs have moved to file a first and a second supplemental complaint.
The plaintiffs’ motions will be granted, and because the supplemental complaints reallege the principal claims set forth in the amended complaint, the defendants’ motions to dismiss will be treated as directed at the second supplemental complaint. Plaintiffs have sufficiently pled standing. Because the plaintiffs failed to make out a prima fade case of personal jurisdiction as to defendant ChevronTexa-co, though, ChevronTexaco’s motion to dismiss will be granted. Plaintiffs have stated a claim for conspiracy to fix prices, but have failed to state a claim for actual or attempted monopolization, conspiracy to monopolize and price discrimination. Accordingly, the motions to dismiss by BP America, ConocoPhillips and Exxon Mobil will be denied in part and granted in part. Because defendant Coral is subject to the exclusive jurisdiction of the Federal Energy Regulatory Commission (“FERC”), Coral’s motion to dismiss for failure to state a claim will be granted.
BACKGROUND
Natural gas is sold at three general levels. First, producers who gather and produce the natural gas sell it to transmitters, such as pipeline operators. (2d Supp. Comply 6.) Pipelines or transmission lines then transport the natural gas from the producers’ sites (known as “wellheads”) to retail distribution systems, like municipal or other utilities, or to large direct users. Municipal distribution systems and other utilities then sell the natural gas directly to consumers. (Id.) The plaintiffs, municipalities who own and operate natural gas distribution systems, supply their residents with natural gas. (Id. ¶ 3.) For a number of years, their efforts to provide their residents’ requirements of natural gas at “reasonable prices” were frustrated by the high price of natural gas. (Id. ¶ 5.) Together, the defendants constitute the five major producers of natural gas in the United States, who control over 70% of the natural gas consumed in the United States. (Id. ¶ 7.)
In December of 1999, the National Petroleum Council (“NPC”)
2
released
Natu
On March 13, 2002, Secretary of Energy Spencer Abraham “requested a new study on natural gas that would provide insights on energy market dynamics, including price volatility ... and natural gas supplies.” (ConoeoPhillips Mot. to Dismiss at 4 (internal quotations omitted).) The NPC formed a new subcommittee and several “Task Groups,” one of which all defendants participated in and one defendant chaired, to undertake the inquiry. (Pis.’ Opp’n at 6.) In September of 2003, the NPC adopted and released one of the “Task Force” reports, Balancing Natural Gas Policy: Fueling the Demands of a Growing Economy (“the 2003 Report”). (Id.; ConoeoPhillips Mot. to Dismiss at 3.) The 2003 Report concluded that there was a shortage of natural gas in the United States and that higher gas prices were required to meet increasing demand. (Pis.’ Opp’n at 7.) According to the 2003 Report, the price of natural gas would continue to rise unless the United States government adopted a series of legislative policies recommended by the NPC. (Id.) The 2003 report projected a steady increase in price over the period of 2003 through 2010. Since the NPC issued the 2003 report, the price of natural gas in the U.S. has not fallen below the level projected in the report. (Id. at 7.) In fact, the average wellhead price for 2004 increased to $5.49 per thousand cubic feet (“Mcf’) and then increased to $6.26 per Mcf in August 2005. 3 (2d Supp.ComplA 20.) The average wellhead price of natural gas in 2006 was $7.05 per Mcf, an increase over the $2.00 per Mcf average price from 1992 to 1999. (Id. ¶ 26.)
After Hurricanes Rita and Katrina made landfall on the Gulf Coast in the fall of 2005, the price of natural gas was expected to average $14.00 per MMBtu between December 2005 and March 2006. (1st Supp.ComplA 26.) In December 2005, New York Mercantile Exchange (“NY-MEX”) futures prices for the 2005-2006 winter reached $15.42 per MMBtu, which was $7.61 per MMBtu higher than the average wellhead price for the 2004-2005 winter months. (2d Supp.ComplY 23.) Similar increases for natural gas futures prices occurred at the Henry Hub futures
Plaintiffs assert that no legitimate justification exists for raising the price of natural gas because there is no shortage in the United States. (2d Supp.Compl^ 27.) Technically recoverable natural gas resources are currently 1,769.6 trillion cubic feet (“Tcf’), representing a 80.9-year supply of natural gas. (Id. ¶ 30.) Working gas, or gas available in the marketplace, in storage was 3.177 Tcf as of September 21, 2006. (Id. ¶ 31.) The amount of natural gas “shut-in,” or temporarily unavailable, as a result of Hurricanes Katrina and Rita between August 26, 2005 and December 9, 2005 was only 0.519 Tcf. (Id. ¶ 32.) When compared to the total consumption of natural gas in the United States in 2005— 21.87 — the plaintiffs allege that no shortage of natural gas exists. (Id. ¶ 28.) Additionally, plaintiffs do not receive their natural gas from the Gulf of Mexico or any other areas that were affected by the 2005 hurricane season. (Id. ¶ 36.)
The defendants, in turn, have reaped substantial profits in the first half of 2006. (Id. ¶ 35.) These profits greatly exceeded the defendants’ reported profits for the first half of 2005.(Id.) The defendants have moved to dismiss, raising as issues standing, personal jurisdiction, the Noerr-Pennington doctrine, and failure to state a claim. The plaintiffs have sought leave to supplement their amended complaint.
DISCUSSION
I. SUPPLEMENTAL COMPLAINT
“Upon motion of a party the court may, upon reasonable notice and upon such terms as are just, permit the party to serve a supplemental pleading setting forth transactions or occurrences or events which have happened since the date of the pleading sought to be supplemented.” Fed.R.Civ.P. 15(d). A court should liberally grant a party’s request to file a supplemental pleading if those supplemental facts connect to the facts asserted in the original pleading.
See Quaratino v. Tiffany & Co.,
Here, plaintiffs request leave to supplement the amended complaint they filed in 2004. The first supplemental complaint provides information related to the rise in natural gas prices on the futures market in 2005, the effects of Hurricanes Rita and Katrina in 2005 on gas reserves, and defendants’ large profits for the third quarter of 2005. (Supp.Compl.1ffl 20-36.) The second supplemental complaint updates the first supplemental complaint with the most recent data from 2006 to substantiate plaintiffs’ allegations. Otherwise, the supplemental claims substantially mirror those in the amended complaint.
II. STANDING
In order to establish antitrust standing, “[a]n antitrust plaintiff must establish an injury-in-fact or a threatened injury-in-fact caused by the defendant’s alleged wrongdoing.”
Andrx Pharm., Inc. v. Biovail Corp. Int’l.,
A. Injury-in-Fact
A plaintiff must plead an injury-in-fact to its property or business.
See Hecht v. Pro-Football, Inc.,
Here, the cities allege that defendants have undermined the cities’ effort to provide natural gas at affordable prices to users in their markets because the defendants have conspired to restrain trade or commerce and have acted to monopolize and increase the price of natural gas. (2d Supp.Compl.f 5.) Plaintiffs allege that because of defendants’ behavior, the plaintiffs have been “denied the benefit of ... an expanded revenue base [and] ... revenues and potential profits from customers not served.” (Id. ¶ 44(c), (d).) Because the loss of revenue and profits is a measure of the injury done to business comparable to the loss of market share, plaintiffs have sufficiently pled an injury-in-fact to their business or property.
B. The Type of Injury
The injury a plaintiff alleges should “reflect the anticompetitive effect either of the violation or of anticompetitive acts made possible by the violation.”
Brunswick,
The cities have alleged that they are forced to pay higher prices for natural gas than a competitive market would allow. (2d Supp.Compl.¶ 44(c).) Plaintiffs’ allegation that defendants have violated the antitrust laws, through a conspiracy to monopolize and price-fixing, could cause the alleged injury suffered by plaintiffs. Plaintiffs claim that prices above market price are precisely the anticompetitive effect that the antitrust laws are designed to prevent. (2d Supp.Compl.¶ 17.)
Defendants argue that because plaintiffs are their competitors on the retail market, plaintiffs have not suffered an antitrust injury because they cannot, as a matter of law, be injured by a conspiracy to raise market prices. (ChevronTexaco Corp.’s Mem. of P. & A. in Supp. of Mot. to Dismiss (“Mot. to Dismiss”) at 10-11.) ChevronTexaco asserts that unlawfully increased gas prices form “the basis of plaintiffs’ Sherman Act Claims.” (Id. at 10.) Although it is true that plaintiffs’ Sherman Act claims are grounded in defendants’ alleged price inflation, plaintiffs do not claim that they compete with defendants in the wholesale market, where defendants allegedly raised prices. Rather, plaintiffs claim they compete with defendants in the retail market, where defendants allegedly sold natural gas at a reduced price. (2d Supp.ComplA 11.) Because plaintiffs do not claim they compete with defendants in the wholesale market, where defendants allegedly inflated prices, their alleged antitrust injury is not barred as a matter of law.
C. The Directness of the Injury
The antitrust laws have never been interpreted “to allow suit by every party affected by an antitrust violation’s ‘ripple of harm.’ ”
Adams v. Pan Am. World Airways, Inc.,
It is inappropriate, however, to deny indirect purchasers antitrust standing where “the direct purchaser is owned or controlled by its customer.”
Ill. Brick Co. v. Illinois,
Although plaintiffs concede they are not direct purchasers from defendants, they allege that “[defendants own or control a number of transmission lines, as well as natural gas marketing entities for the sale and transportation of natural gas produced by them in interstate commerce, and [plaintiffs believe this will be supported by additional evidence after a reasonable opportunity for further investigation or discovery.” (2d Supp.Compl.¶ 10).
Because plaintiffs have alleged defendants controlled intermediaries in the natural gas market that may have sold to plaintiffs, plaintiffs’ indirect purchaser status does not bar their claims.
D. The Remaining Factors
First, there is nothing speculative about plaintiffs’ claims for damages. Plaintiffs seek damages for the alleged loss of revenue and profits (2d Supp.Compl.¶ 44(c)), which are the types of damages that courts have been willing to calculate in antitrust cases.
See Long Island Lighting Co. v. Standard Oil Co. of Cal.,
Second, it is unlikely, based on the record, that other entities who are more direct victims than these plaintiffs exist. Neither defendants nor plaintiffs have identified other potential plaintiffs that compete with defendants in the retail natural gas market. In addition, if plaintiffs’ allegations are proven true, entities engaged in natural gas transmission and marketing would be unlikely to enforce their rights if they are controlled by defendants.
Finally, it is also unlikely that there is any danger of duplicative recovery or complex apportionment of damages. Because plaintiffs’ alleged damages are not based on a pass through overcharge, it would not be necessary in this case to divide the alleged damages “between direct and indirect purchasers on some consistent theory governing the extent to which direct purchasers would pass on the overcharge and the damage recovery.”
Adams,
Because plaintiffs’ claim for damages is not “speculative,” victims who are more direct victims likely do not exist, there is low potential for duplicative recovery, and apportioning damages would not appear to be complex, plaintiffs have sufficiently established standing.
III. PERSONAL JURISDICTION
Under Fed.R.Civ.P. 12(b)(2), “[t]he plaintiff bears the burden of proof’ that defendants are subject to the court’s jurisdiction.
United States v. Smithfield Foods, Inc.,
When evaluating a motion to dismiss under Rule 12(b)(2), a court is generally permitted to look outside the pleadings to determine if a plaintiff has established a
prim a facie
showing of personal jurisdiction.
Brunson v. Kalil & Co.,
Defendant ChevronTexaco claims that this court lacks personal jurisdiction over it and that plaintiffs have failed to meet their burden of establishing that Chev-ronTexaco is subject to the court’s jurisdiction. (ChevronTexaco Corp.’s Mot. to Dismiss at 13.) Plaintiffs argue that ChevronTexaco is subject to this court’s jurisdiction because ChevronTexaco has an office located in the District of Columbia permanently staffed by a Vice-President, and because of ChevronTexaco’s participation in the 2002-2003 NPC meeting in the District of Columbia which forms the basis of plaintiffs’ complaint. (Pis.’ Opp’n at 37.) These facts are insufficient to meet plaintiffs’ burden of establishing a prima facie case of personal jurisdiction under either the District’s jurisdictional statutes or Section 12 of the Clayton Act.
A. Due Process and the District of Columbia long-arm, statute
“To establish personal jurisdiction over a non-resident, a court must engage in a two-part inquiry: A court must first examine whether jurisdiction is applicable under the state’s long-arm statute and then determine whether a finding of jurisdiction satisfies the constitutional requirements of due process.”
GTE New Media Servs., Inc. v. BellSouth Corp.,
1. General jurisdiction
The District of Columbia’s general jurisdiction statute, D.C.Code § 13-334(a), “authorizes the courts in this jurisdiction to ‘exercise “general jurisdiction” over a foreign corporation as to claims not arising from the corporation’s conduct in the District, if the corporation is doing business in the District.’ ”
AGS Int’l Servs. S.A. v. Newmont USA Ltd.,
According to plaintiffs, ChevronTexaco “has a corporate office in the District of Columbia at 1401 I Street, N.W., at which it has a Vice President permanently assigned.” (Pis.’ Opp’n at 37.) Plaintiffs
The facts provided by plaintiffs fail to establish a sufficient “factual basis for the court’s exercise of personal jurisdiction,”
Arista Records,
2. Specific jurisdiction
Under the District of Columbia’s long-arm statute, a court in the District of Columbia may exercise personal jurisdiction over a person outside the District if the plaintiffs claim arises from the defendant’s “transacting any business in the District of Columbia.” D.C.Code § 13-423(a)(1). Like the District of Columbia’s general jurisdiction statute, “[sjection (a)(l)’s ‘transacting any business’ clause generally has been interpreted to be coex-
tensive with the Constitution’s due process requirements and thus to merge into a single inquiry.”
GTE New Media Servs., Inc. v. BellSouth Corp.,
Plaintiffs appear to assert that this court has specific personal jurisdiction over ChevronTexaco by virtue of Chevron-Texaco’s participation in the “2003 subcommittee of the NPC that prepared the pricing for natural gas at high levels.” (Pis.’ Opp’n at 37.) This allegation is insufficient to subject ChevronTexaco to the jurisdiction of this court because it is merely a conclusory assertion that lacks factual particularity.
First, to the extent that plaintiffs contend that ChevronTexaco is subject to this court’s personal jurisdiction based on ChevronTexaco’s alleged conspiratorial activities, the allegation that ChevronTexaco conspired with other defendants “represents nothing more than a legal conclusion, which we have held ‘does not constitute the
prima facie
showing necessary to carry the burden of establishing personal jurisdiction.’ ”
Second Amendment Found. v. U.S. Conference of Mayors,
Second, the fact that ChevronTexaeo participated in the 2003 NPC meeting does not alone satisfy plaintiffs’ burden of establishing a
prima fade
case of personal jurisdiction because the “government contacts exception precludes the assertion of personal jurisdiction over a non-resident whose only contact with the District of Columbia is with Congress or a federal agency.”
Kalil & Co., Inc.,
B. Personal jurisdiction under the Clayton Act
Section 12 of the Clayton Act contains both a venue provision and service of process provision:
Any suit, action, or proceeding under the antitrust laws against a corporation may be brought not only in the judicial district whereof it is an inhabitant, but also in any district wherein it may be found or transacts business; and all process in such cases may be served in the district of which it is an inhabitant, or wherever it may be found.
15 U.S.C. § 22. “ ‘Section 12 is essentially a long-arm statute which permits service of process in a non-forum district [and personal jurisdiction in the forum district], so long as the venue provision is met.’ ”
Diamond Chem. Co. v. Atofina Chems., Inc.,
To demonstrate inhabitancy in the District of Columbia, a plaintiff must show that the defendant is incorporated here.
See MCI Commc’ns Corp. v. Am. Telephone and Telegraph Co.,
Civil Action No. 79-1182,
Plaintiffs have made none of these showings. Plaintiffs do not allege that ChevronTexaco is incorporated in the District of Columbia. In addition, plaintiffs provide no factual support, aside from allegations of ChevronTexaeo’s participation in the 2003 NPC meeting, that ChevronTexa-co engaged in continuous local activities in the District of Columbia. While plaintiffs allege that ChevronTexaco has an office here permanently staffed by a Vice-President, they do not allege additional facts showing that ChevronTexaco directly conducts business in the District of Columbia.
See e.g., MCI Commn’cs Corp.,
IV. NOERR-PENNINGTON
“[T]he Sherman Act does not prohibit two or more persons from associating together in an attempt to persuade the legislature or the executive to take particular action with respect to a law that would produce a restraint or a monopoly.”
E. R.R. Presidents Conference v. Noerr Motor Freight, Inc.,
“The same philosophy governs the approach of citizens or groups of them to the administrative agencies (which are both creatures of the legislature, and arms of the executive) and to courts, the third branch of Government.”
Cal. Motor Transp. Co. v. Trucking Unlimited,
Not all conduct intended to influence the political process is immune from Sherman Act liability. The scope of
Noerr
protection depends on “the source, context, and nature of the anticompetitive restraint at issue.”
Allied Tube & Conduit Corp. v. Indian Head, Inc.,
Here, plaintiffs claim that defendants conspired to influence the NPC 2003 Report so that it would reflect that “there now was a shortage of natural gas in the United States, and that in order to meet the 1999 Report’s goals of increased gas usage in the future, much higher gas prices would be required.” (Pis.’ Opp’n at 7.) According to plaintiffs, there is no shortage of natural gas because output levels have grown and the defendants have a seen significant increase in profits since 2000. (2d Supp.Compl.lf 18.) Plaintiffs conclude, therefore, that the defendants’ agreement to the projections contained in the NPC report, after defendants were convened through the NPC by the Secretary of Energy, constitutes defendants’ violation of Section 1 of the Sherman Act. (2d Supp.Compl^ 17.) Plaintiffs claim that because defendants’ violation is the
Defendants argue that their membership in the NPC shields them from antitrust liability because their participation in the NPC is protected by the
Noerr/Pennington
doctrine.
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Defendants argue that the 2003 NPC report represents “solicitation of governmental action with respect to the passage and enforcement of laws.”
Noerr Motor Freight, Inc.,
Although it is true that defendants, through their participation in the NPC, recommended policies to the Secretary of Energy, the Supreme Court has made clear that the
Noerr
doctrine does not protect “every concerted effort that is genuinely intended to influence government action.”
Allied Tube,
Plaintiffs allege defendants caused the gas prices to reflect or surpass the projections of the 2003 NPC report by “re-ducting] or exclud[ing] supplies for a sustained period of time and thereby in-creas[ing] wholesale prices.” (2d Supp. Comply 9.) Plaintiffs have not alleged that the NPC as a whole participated in the act of illegally raising the price of natural gas, nor have they alleged that defendants raised the price of natural gas pursuant to a valid legislative or administrative directive. The anticompeti-tive restraint alleged — price fixing — is not “ ‘the consequence of legislation or other governmental action....’”
Andrx,
V. FAILURE TO STATE A CLAIM UNDER RULE 12(b)(6)
A motion to dismiss for failure to state a claim under Fed.R.Civ.P. 12(b)(6) should be granted only where it appears that there is no set of facts in support of the claims which would entitle a plaintiff to relief.
Conley v. Gibson,
A. Price Fixing under Sherman Act § 1
“Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.” 15 U.S.C. § 1. “Under the Sherman Act a combination formed for the purpose and with the effect of raising, depressing, fixing, pegging, or stabilizing the price of a commodity in interstate or foreign com
To allege a conspiracy, the plaintiffs must allege more than just that the defendant violated the antitrust laws.
Ass’n of Retail Travel Agents, Ltd. v. Air Transport Ass’n of Am.,
However, “concerted action may be established by circumstantial evidence.”
Fed. Trade Comm’n v. Lukens Steel Co.,
Here, plaintiffs allege that the defendants conspired to fix prices through their participation in drafting the NPC reports in which they projected future price projections and suggested that the higher price of natural gas was due to fluctuations in supply and demand. (2d Supp.Compl.1ffl 17, 18.) Plaintiffs argue that despite defendants’ claim of a natural gas shortage in the 2003 report, there is “no evidence that the existing total resource base of natural gas in Canada and the United States has shrunk from that shown in the December 1999 Report.” (2d Supp.Compl^ 18.) Instead, defendants’ projection constituted an attempt to “ensure unnecessarily high prices for natural gas” (2d Suppl Compl. ¶ 20) and “actual
Plaintiffs’ additional allegations about the high price of natural gas on the futures market, the supply of natural gas for the United States after Hurricanes Rita and Katrina in the fall of 2005, and the staggering profits reported by the defendants further create an inference that the defendants conspired to fix the price of natural gas. First, the facts alleged concerning the high price of natural gas could support an inference that defendants conspired to raise prices to reap the enormous benefits described by plaintiffs. Second, facts alleged about the amount of proved reserves and the total usage of natural gas could support an inference that defendants falsified their statement about the shortage of natural gas to increase their profits.
Plaintiffs have sufficiently alleged that the defendants agreed to fix prices in violation of Section 1 of the Sherman Act.
See Mylan,
B. Monopolization under Sherman Act § 2
“Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony....” 15 U.S.C. § 2.
8
To plead a colorable Section 2 claim for actual monopolization, a plaintiff must make factual allegations showing “(1) the possession of monopoly power in the relevant market and (2) the willful acquisition or maintenance of that power as distinguished from growth or development as a consequence of a superior product, business acumen, or historical accident.”
United States v. Grinnell Corp.,
1. Actual Monopolization
Plaintiffs have failed to state a claim that defendants possess monopoly power. Monopolization and attempted monopolization claims must address the unilateral actions of a single firm.
Spectrum Sports, Inc. v. McQuillan,
In determining monopoly power, courts typically assess a defendant’s aggregate market share.
See e.g., Rebel Oil Co., v. Atl. Richfield Co.,
2. Attempted Monopolization
Plaintiffs have also failed to factually allege attempted monopolization. Specific intent to engage in predatory or anticompetitive conduct is a required element of attempted monopolization.
Ass’n for Intercollegiate Athletics for Women v. Nat’l Collegiate Athletic Ass’n,
Here, the plaintiffs have alleged no predatory or exclusionary acts that would support an inference of the defendants’ specific intent to monopolize. Even if defendants raised their prices artificially, this would not have harmed their competitors because higher prices would make it easier for competitors to compete in the market, would not evince an anticompeti-tive intent, and thus could not qualify as a predatory practice.
See GTE New Media Servs., Inc. v. Ameritech Corp.,
3. Conspiracy to Monopolize
Plaintiffs have not sufficiently alleged that defendants conspired to monopolize the natural gas retail market.
Cf. Perington Wholesale, Inc.,
C. Price Discrimination under Robinson-Patman Act § 2
Under § 2(a) of the Robinson-Patman Act, 15 U.S.C. §§ 13(a)-(f), sellers are precluded from discriminating in price between purchasers. Section 2(a) reads in pertinent part:
It shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade and quality, whether either or any of the purchases involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, and where the effect of such discrimination may be substantially to lesson competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them[.]
15 U.S.C. § 13(a). In order to state a claim under Section 2(a), a plaintiff must allege “(1) two or more consummated sales, (2) reasonably close in point of time, (3) of commodities, (4) of like grade and quality, (5) with a difference in price, (6) by the same seller, (7) to two or more different purchasers, (8) for use, consumption, or resale within the United States or any territory thereof, (9) which may result in competitive injury.”
Bus. Equip. Ctr., Ltd. v. Dejur-Amsco Corp.,
Civil Action No. 76-1680,
Here, plaintiffs allege that “[d]e-fendants have maintained discriminatory price differentials between sales of natural gas available to [p]laintiffs at wholesale and direct sales to large retail customers, which has in the past and continues now to substantially lessen competition.” (2d Supp.Compl¶ 43.) This claim is faulty for several reasons. It fails to allege “two or more consummated sales ... reasonably close in point of time” or the existence of a “different purchaser[ ]” who purchased natural gas “reasonably close in point of time.”
Bus. Equip. Ctr., Ltd.,
D. FERC Jurisdiction
Unlike the other defendant gas producers in this action, Coral is a natural gas marketer and is subject to the jurisdiction of the FERC. Because Coral does not produce gas as a marketer, it does not offer natural gas for first sale
9
in the relevant market. FERC has exclusive jurisdiction to regulate secondary sales of natural gas. (Coral’s Mem. of Law in
The filed rate doctrine “provides that state law, and some federal law (e.g. antitrust law), may not be used to invalidate a filed rate [or] to assume a rate would be charged other than the rate adopted by the federal agency in question.”
Transmission Agency of N. Cal. v. Sierra Pac. Power Co.,
Plaintiffs may not seek damages from Coral in this action stemming from the rates that Coral charges for natural gas over which FERC maintains exclusive jurisdiction. Coral’s motion to dismiss for failure to state a claim due to the preemption of the claims by the filed rate doctrine will be granted.
CONCLUSION
Plaintiffs have standing to raise their claims that the defendants violated the antitrust laws. Plaintiffs have failed to make out a prima facie case of personal jurisdiction as to ChevronTexaco, and its motion to dismiss will be granted. The plaintiffs have stated a claim to price fix, but have failed to state a claim for monopolization, attempted monopolization, conspiracy to monopolize, or price discrimination as to any defendants. Thus, the motions by BP America, ConocoPhil-lips and Exxon Mobil to dismiss will be denied in part and granted in part. Because FERC maintains exclusive jurisdiction over Coral’s rates, Coral’s motion to dismiss will be granted. Plaintiffs’ motion for leave to file a first and a second supplemental complaint will be granted. It is hereby
ORDERED that Coral’s Motion to Dismiss [27] be, and hereby is, GRANTED. It is further
ORDERED that the motions to dismiss by BP America [23], ConocoPhillips [24], and Exxon Mobil [26] be, and hereby are, GRANTED IN PART and DENIED IN PART. Plaintiffs’ claims of monopolization, attempted monopolization, conspiracy to monopolize and price discrimination are DISMISSED. Plaintiffs’ claim of conspiracy to fix prices survives. It is further
ORDERED that plaintiffs’ motions [43, 69] for leave to file supplemental complaints be, and hereby are, GRANTED.
Notes
. The plaintiffs are the cities of Moundridge, Kansas; Winfield, Kansas; Coffeyville, Kansas; Denison, Kansas; Garnett, Kansas; Greensburg, Kansas; Halstead, Kansas; Humboldt, Kansas; Iola, Kansas; La Cygne, Kansas; Macon, Missouri; Minneapolis, Kan sas; Osage City, Kansas; Rensselaer, Indiana; Sabinal, Texas; Shelbina, Missouri; and Wellington, Kansas, and the Village of Ston-ington, Illinois.
. The NPC is an advisory committee to the Department of Energy that operates pursuant
. Plaintiffs shift natural gas unit measures from MMBtu to McF without explanation. The conversion rate is 1 Mcf equals approximately 1.027 MMBtu. James L. Sweeney, Energy Policy and Economics Overview (2001), http://siepr.stanford.edu/about/Energy. pdf.
. The Henry Hub is a pipeline hub on the Louisiana Gulf Coast which is the delivery point for the natural gas futures contracts on the NYMEX. (2d Supp.Compl-¶ 24.) All defendants use Henry Hub prices in their third quarter 2005 financial reports, with the exception of Exxon Mobil which does not break out natural gas prices. (Id.)
. To establish personal jurisdiction, a plaintiff "is entitled to reasonable discovery” if the plaintiff requests it.
Second Amendment Found. v. U.S. Conference of Mayors,
. Plaintiffs rightfully carry a heavier burden in answering a jurisdictional challenge under Rule 12(b)(2) than a 12(b)(6) challenge to the sufficiency of pled claim. Generally, a claim is adequately pled if it satisfies Rule 8(a)(2)’s threshold of a short and plain factual statement which if proven would entitle the pleader to relief. That entitles a plaintiff to proceed with litigation.
Stokes v. Cross,
. Defendant ConocoPhillips also contends that the NPC is immune from federal antitrust laws because the NPC is a federal instrumentality and NPC's immunity should be extended to defendants. (ConocoPhillips Mot. to Dismiss at 9-11, 20.) "It is well-established that the antitrust laws do not extend to actions of agencies or instrumentalities of the federal government, even when those agencies operate in competition with and to the detriment of private enterprise.”
IT&E Overseas, Inc.
v.
RCA Global Commc’ns, Inc.,
. Although defendants moved to dismiss claims that they have monopolized or attempted to monopolize, plaintiffs failed to address those arguments in their opposition to the defendants’ motions to dismiss. (Pis.' Opp'n at 17-21.) The defendants' motions to dismiss the claims of monopolization and attempted monopolization, therefore, are deemed conceded.
Stephenson v. Cox,
. A first sale is defined as "any sale of any volume of natural gas (i) to any interstate pipeline or intrastate pipeline; (ii) to any local distribution company; (iii) to any person for use by such person; (iv) which precedes any sale described in clauses (i), (ii), or (iii); and (v) which precedes or follows any sale described in clauses (i), (ii), (iii), or (iv) and is defined by the Commission as a first sale to prevent circumvention of any maximum lawful price established under this chapter.” 15 U.S.C. § 3301(21)(A).
