FEDERAL POWER COMMISSION v. AMERADA PETROLEUM CORP. ET AL.
No. 585
Supreme Court of the United States
Decided February 1, 1965
379 U.S. 687
William H. Webster, Edwin S. Nаil and Joseph W. Morris for Amerada Petroleum Corp., and William R. Allen and Cecil E. Munn for Signal Oil & Gas Co., respondents.
PER CURIAM
Montana-Dakota (MDU) is an interstate nаtural gas pipeline company, selling and transporting gas in Montana, North Dakota, South Dakota, and Wyoming. The lines involvеd here run to the east and west from the Tioga processing plant in North Dakota, jointly owned by Amerada and Signal, producers of natural gas in North Dakota. Also, running north from the Tioga point is
On a peak winter day in 1962-1963 MDU was expected to purchase a totаl of 70,000 Mcf of North Dakota-produced gas from these four producers: 55,000 Mcf from Amerada-Signal, 10,000 Mcf from TXL, and 5,000 Mcf from Hunt-Herbert. Of the 55,000 Mcf from Amerada-Signal, 50,000 Mcf would flow to the east and be consumed in North Dakota. All of the Hunt-Herbert and TXL gas, plus the remaining 5,000 Mcf of the Amerada-Signal gas, would flow to the west—a total of 20,000 Mcf. Of this westward-flowing gas, 10,200 Mcf would be consumed in North Dakota; the remaining 9,800 Mcf would flow across the state boundary into Montana for consumption outside of North Dakota.
On an averаge summer day MDU would take about 45,000 Mcf from Amerada-Signal, while continuing to take about 15,000 Mcf from Hunt-Herbert and TXL. Of the Amerada-Signal gas, 13,000 Mcf would flow westward, commingled with the 15,000 Mcf from Hunt-Herbert and TXL. Only 1,680 Mcf of this stream would be consumed in North Dakota; the remaining 26,320 Mcf would flow into Montana to be held in storage for ultimate redelivery to all parts of MDU‘s interstate system. 32,000 Mcf of gas would flow eastward, all from Amerada-Signal. In contrast to the situation on a peak winter day, only 7,280 Mcf of this eastward-flowing gas would be consumed in North Dakota, while 24,720 Mcf would cross the state boundary and go into storage.
The contracts for the purchase of gas from Hunt-Herbert and TXL admittedly constitute sales of gas for resale within the meaning of
Prior to entering into the Hunt-Herbert-TXL contracts, MDU entered into contracts with Amerada and Signal which are here in issue. First, MDU concluded the so-called “North Dakоta Contracts” with both Amerada and Signal. Under these contracts MDU must buy at least two-thirds of its annual North Dakota requirements from Amеrada-Signal, and it may buy up to all of its North Dakota requirements from them if it so elects. The contracts recite that “all gаs purchased by Buyer under this agreement shall be transported, used and consumed entirely within the State of North Dakota.” Soon thereafter, MDU entered its separate “Interstate Contracts” with Amerada and Signal. These contracts provide thаt MDU must take or pay for a certain number of Mcf per year (and per day) if available, “less the quantity of gas which Buyer shall pay for with respect to such calendar year under the Amerada [or Signal] North Dakota Contract.”
Respondеnts Amerada and Signal contended before the Federal Power Commission that sales to MDU under the “North Dakota Contraсts” would be “nonjurisdictional” since they were not sales in interstate commerce for resale. Relying on its decision in Lo-Vaca Gathering Co., 26 F. P. C. 606 (reversed, 323 F. 2d 190, reversed, ante, p. 366), the Cоmmission rejected the contention and asserted its jurisdiction over the sales. 30 F. P. C. 200. The Court of Appeals reversed. 334 F. 2d 404. The Commission has petitioned for writ of certiorari.
All of the gas purchased by MDU from Amerada-Signal under both sets of contracts is delivered into the pipeline at the Tioga plаnt. According to the testimony of MDU‘s engineer, on a peak winter day the pipeline would elect to purchase all of the Amerada-Signal gas under the “North Dakota Contracts.” Yet, as previously shown, on such a day some of the Ameradа-Signal gas flows westward, in a commingled stream with gas from
Factually, therefore, the present case is on all fours with California v. Lo-Vaca Gathering Co., ante, p. 366.
The Court of Appeals thought that its decision in North Dakota v. Federal Power Comm‘n, 247 F. 2d 173, brought collatеral estoppel into play in the present case. 334 F. 2d 404, 411-412. But that rule has no place here for no judgment governing past events is in jeopardy, only the scope of future regulation that involves different events and transactions. See Commissioner v. Sunnen, 333 U. S. 591, 601-602.
Accordingly, the writ of certiorari is granted, and the judgment of the Court of Appeals is reversed.
It is so ordered.
MR. JUSTICE GOLDBERG, with whom MR. JUSTICE STEWART joins, concurring.
I agree with the Court that this case is clearly controlled by our recent decision in California v. Lo-Vaca Gathering Co., ante, p. 366, and thus join the opinion and judgment of the Court. I concur, however, in order to make explicit my understanding of the rationale of the Court‘s decision in this case.
At the time of this action, respondents, as in Lo-Vaca, attributed to themselvеs a greater percentage of so-called nonjurisdictional gas than their proportionate share of
MR. JUSTICE HARLAN: Yielding to the Court‘s view that the case-by-case аpproach is an acceptable method of procedure in this area of the Commission‘s functions (see thе Court‘s opinion in the Lo-Vaca case at 366 and my dissenting opinion therein at 371), I join the concurring opinion of my Brother GOLDBERG.