Louisiana Ass'n of Independent Producers and Royalty Owners v. F.E.R.C.

Decision Date10 March 1992
Docket NumberNos. 91-1026,s. 91-1026
Parties, 130 P.U.R.4th 48 LOUISIANA ASSOCIATION OF INDEPENDENT PRODUCERS AND ROYALTY OWNERS, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Algonquin Gas Transmission Company, ANR Pipeline Company, Bay State Gas Company, et al., Brooklyn Union Gas Company, Central Hudson Gas & Electric Corporation, CNG Transmission Corporation, Iroquois Gas Transmission System, L.P., Long Island Lighting Company, New England Power Company, New Jersey Natural Gas Company, Public Service Electric & Gas Company, Tennessee Gas Pipeline Company, Texas Eastern Transmission Corporation, Transcanada Pipelines Limited, Intervenors. NEW ENGLAND FUEL INSTITUTE, Empire State Petroleum Association, and Fuel Merchants Association of New Jersey, Petitioners, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Algonquin Gas Transmission Company, ANR Pipeline Company, Bay State Gas Company, et al., Brooklyn Union Gas Company, Central Hudson Gas & Electric Corporation, CNG Transmission Corporation, Consolidated Edison Company of New York, Inc., Granite State Gas Transmission, Inc., Iroquois Gas Transmission System, L.P., Long Island Lighting Company, New England Power Company, New Jersey Natural Gas Company, Public Service Electric & Gas Company, Tennessee Gas Pipeline Company, Texas Eastern Transmission Corporation, Transcontinental Gas Pipe Line Corporation, Intervenors. Anne Marie MUESER and GASP Coalition, Petitioners, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Algonquin Gas Transmission Company, ANR Pipeline Company, Bay State Gas Company, et al., Brooklyn Union Gas Company, Central Hudson Gas & Electric Corporation, CNG Transmission Corporation, Granite State Gas Transmission, Inc., Iroquois Gas Transmission System, L.P., Long Island Lighting Company, New England Power Company, Public Service Electric & Gas Company, New Jersey Natural Gas Company, Tennessee Gas Pipeline Company, Texas Eastern Transmission Corporation, Transcanada Pipelines Limited, Transcontinental Gas Pip
CourtU.S. Court of Appeals — District of Columbia Circuit

Petitions for Review of Orders of the Federal Energy Regulatory Commission.

Gary J. Klein, with whom J. Cathy Fogel, Washington, D.C., for New England Fuel Institute, Empire State Petroleum Ass'n and Fuel Merchants Ass'n, of New Jersey, Robert C. Platt, Washington, D.C., for Louisiana Ass'n of Independent Producers and Royalty Owners, and Anne Marie Mueser for Anne Marie Mueser and GASP Coalition were on the joint brief, for petitioners in 91-1026, 91-1027, and 91-1028, and intervenors in 91-1081.

David B. Robinson, with whom Duane A. Siler and Robert C. Platt, Washington, D.C., were on the joint brief, for petitioners, State of La. in 91-1160 and Louisiana Ass'n of Independent Producers and Royalty Owners in 91-1026 and for intervenors, Elsbury Production, Inc., Burk Royalty Company, J. Cleo Thompson and James Cleo Thompson, Jr., Natural Gas Anadarko Co., Wolverine Gas and Oil Co., Inc., Convexx Oil and Gas, Inc., Independent Oil and Gas Ass'n of West Virginia, Kingdon R. Hughes, Robert P. Evans, Union Texas Petroleum Co., Harvey E. Yates Co. and State of Oklahoma in 91-1160.

Judy M. Johnson, Houston, Tex., for petitioner, Texas Eastern Transmission Corp. in 91-1081 and intervenor, Algonquin Gas Transmission Co. in 91-1026, 91-1027, 91-1028 and 91-1160. Paul A. Biancardi, Houston, Tex., and Rebecca S. Haney, Washington, D.C., also entered appearances for petitioners.

Jerome M. Feit, Solicitor, F.E.R.C., with whom William S. Scherman, Gen. Counsel, Timm L. Abendroth and Randolph Lee Elliott, Attys., Washington, D.C., were on the brief, for respondent in 91-1026, 91-1027, 91-1028, 91-1081, and 91-1160.

Frederick M. Lowther, with whom Ernest B. Abbott, Frederic G. Berner, Jr., and Alan C. Geolot, Washington, D.C., were on the joint brief, for intervenors, Iroquois Gas Transmission System, L.P. and Tennessee Gas Pipeline Co. in 91-1026, 91-1027, 91-1028, 91-1081, and 91-1160. Johannes W. Williams and Carl M. Fink, Washington, D.C., also entered appearances for intervenors.

J. Gordon Pennington and Daniel F. Collins, Washington, D.C., entered appearances for intervenor, ANR Pipeline Co. in 91-1026, 91-1027, 91-1028, 91-1081, and 91-1160.

Carl Ulrich, Stephen E. Williams, and Mark D. Colley, Washington, D.C., entered appearances for intervenor, CNG Transmission Corp. in 91-1026, 91-1027, and 91-1028.

Nancy A. White, Paul H. Keck and Robert I. White, Washington, D.C., entered appearances for intervenor, Transcanada Pipelines Limited in 91-1026, 91-1028, 91-1081, and 91-1160.

Alfred Winchell Whittaker, Washington, D.C., entered an appearance for intervenor, New England Power Co. in 91-1026, 91-1027, 91-1028, and 91-1160.

Barbara K. Heffernan and Bruce B. Glendening, Washington, D.C., entered appearances for intervenors, Bay State Gas Co., et al. in 91-1026, 91-1027, 91-1028, and 91-1160.

Thomas F. Brosnan, Washington, D.C., entered an appearance for intervenor, Granite State Gas Transmission, Inc. in 91-1027 and 91-1028.

John W. Ebert, Robert G. Hardy and Anthony J. Ivancovich, Washington, D.C., entered appearances for intervenor, Transcontinental Gas Pipe Line Corp. in 91-1027 and 91-1028.

Steven J. Kalish, William I. Harkaway, Washington, D.C., Barbara M. Gunther, New York City, and Donald Stanber entered appearances for intervenor, Consolidated Edison of New York, Inc. in 91-1027 and 91-1081.

Paul W. Fox, Washington, D.C., entered an appearance for intervenor, ProGas, Limited in 91-1081.

J. Richard Tiano, Bridgeport, Conn., entered an appearance for intervenor, Southern Connecticut Gas Co. in 91-1160.

Before MIKVA, Chief Judge, SILBERMAN and RANDOLPH, Circuit Judges.

Opinion for the court filed PER CURIAM.

PER CURIAM:

The Iroquois/Tennessee Project is part of a billion dollar plan to ship natural gas from Alberta across the Canadian prairie to the Northeastern United States. Participants in the plan have sought licenses, certifications, and authorizations before numerous state, federal, and Canadian regulatory bodies. In this case, three groups of petitioners challenge the Federal Energy Regulatory Commission's certification of the American transportation component, a 370-mile pipeline extending from the Canadian border in upstate New York to Long Island. The first group consists of a coalition of upstate New Yorkers concerned about the environmental effects of the pipeline and fuel oil dealers from New England and Louisiana (the "Coalition"). They challenge the certification on the ground that the Commission reached its decision unfairly, improperly, and in violation of due process. The second group of petitioners are domestic oil and natural gas producers led by the State of Louisiana (the "domestic producers"). They argue that the Commission should have adjusted the rates of the proposed pipeline to compensate for what they allege to be the anticompetitive effects of Canadian rate designs. The final petitioner, the Texas Eastern Transmission Company, is one of the domestic pipelines involved in the project. It seeks review of FERC's refusal to grant it a case-specific certificate. Finding none of these petitions persuasive, we deny them.

I

The Iroquois pipeline begins in Iroquois, Ontario, and proceeds across the St. Lawrence River, eastern New York State, western Connecticut, and Long Island Sound, ending near South Commack, Long Island. The pipeline interconnects with a Canadian pipeline at its origin, with the Long Island Lighting Company's pipeline at its terminus, and with the Tennessee Gas Pipeline Company's system at two points along the way. To serve customers not directly linked to either the Iroquois or its own system, Tennessee plans to build some 140 miles of pipeline loops and laterals. The Tennessee system is connected to pipeline facilities operated by Algonquin Gas Transmission Company, which plans to build another 45 or so miles of loops and laterals to serve both customers importing gas from Canada and those shipping domestic gas through the ANR project. See infra p. 1108. To accommodate several New Jersey customers of the Iroquois/Tennessee Project, Texas Eastern plans to exchange domestic gas shipped on its pipeline for imported gas shipped on the Iroquois.

Once fully operational, the Iroquois/Tennessee Project will serve 17 local distribution companies (LDCs), three cogeneration customers, and one electric generation customer on a firm or continuous basis and provide interruptible service to an indeterminate number of other customers. Six of...

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