Transcontinental Gas Pipe Line Corp. v. State Oil and Gas Board of Mississippi et al. (474 U.S. 409)

U.S. Supreme Court · decided January 22, 1986 · Supreme Court Database (Spaeth)

Citation
474 U.S. 409 · 106 S. Ct. 709
Decided
January 22, 1986
Term
October Term 1985
Vote
5–4
Majority author
Justice Blackmun
Issue area
Federalism
Disposition
Reversed
Outcome
Petitioning party won
Ideological direction
Liberal

Opinion excerpt

Justice Blackmun delivered the opinion of the Court. We are confronted again with the issue of a state regulation requiring an interstate pipeline to purchase gas from all the parties owning interests in a common gas pool. The purchases would be in proportion to the owners’ respective interests in the pool, and would be compelled even though the pipeline has pre-existing contracts with less than all of the pool’s owners. This Court, in Northern Natural Gas Co. v. State Corporation Comm’n of Kansas, 372 U. S. 84 (1963), struck down, on pre-emption grounds, a virtually identical regulation. In the present case, however, the Supreme Court of Mississippi ruled that the subsequently enacted Natural Gas Policy Act of 1978 (NGPA), 92 Stat. 3351, 15 U. S. C. §3301 et seq., effectively nullified Northern Natural by vesting regulatory power in the States over the wellhead sale of gas. The Mississippi Supreme Court went on to hold that the Mississippi regulation did not impermissibly burden interstate commerce. Because of the importance of the issues in the functioning of the interstate market in natural gas, we noted probable jurisdiction. 470 U. S. 1083 (1985). I The Harper Sand gas pool lies in Marion County in southern Mississippi. Harper gas is classified as “high-cost natural gas” under NGPA’s § 107(c)(1), 15 U. S. C. § 3317(c)(1), because it is taken from a depth of more than…

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