Federal Energy Regulatory Commission v. Martin Exploration Management Co. et al. (486 U.S. 204)
U.S. Supreme Court · decided May 31, 1988 · Supreme Court Database (Spaeth)
- Citation
- 486 U.S. 204 · 108 S. Ct. 1765
- Decided
- May 31, 1988
- Term
- October Term 1987
- Vote
- 8–0
- Majority author
- Justice Brennan
- Issue area
- Economic Activity
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Liberal
Opinion excerpt
Justice Brennan delivered the opinion of the Court. These cases involve natural gas covered by overlapping provisions of the Natural Gas Policy Act of 1978 — one setting a price ceiling, the other declaring prices deregulated. Petitioners contend that under § 101(b)(5) of the Act such gas should be classified as deregulated gas. The United States Court of Appeals for the Tenth Circuit held that under § 101(b)(5) such gas falls under whichever classification affords producers the highest price under their contracts and current market conditions. The Court of Appeals also held invalid a Federal Energy Regulatory Commission (FERC) ruling that certain “new tight formation gas” under §107 (c)(5) of the Act is automatically “new” gas qualified for deregulated treatment under § 102(c) or § 103 of the Act. We reverse on both issues. I From 1938 to 1978, the Federal Government regulated only the interstate natural gas market. By the 1970’s, however, shortages in the interstate market developed because gas producers could get higher prices in unregulated intrastate markets. Two conflicting legislative solutions were developed: the Senate passed a bill deregulating interstate gas, S. 2104, 95th Cong., 1st Sess. (1977); the House passed a bill extending federal regulation to intrastate gas, H. R. 8444, 95th Cong., 1st Sess. (1977). The Conference Committee struck a compromise. H. R.…
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