Texas Pipeline Association v. Federal Energy Regulatory Commission

661 F.3d 258 (2011)

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Texas Pipeline Association v. Federal Energy Regulatory Commission

United States Court of Appeals for the Fifth Circuit
661 F.3d 258 (2011)

  • Written by Robert Cane, JD

Facts

The Energy Policy Act of 2005 authorizes the Federal Energy Regulatory Commission (FERC) (defendant) to issue rules that facilitate transparency in the interstate natural-gas market. Section 316 of the act provides that FERC must oversee the dissemination of information regarding the availability and prices of natural gas sold at wholesale and in interstate commerce by any market participant. Under this authority, FERC issued its Posting Rule, which required major intrastate pipelines (natural gas pipelines operating within only one state) to comply with FERC’s requirements for posting natural-gas supply and price information. FERC reasoned that § 316 of the Energy Policy Act included major intrastate pipelines as participants in the interstate market for natural gas because they served as links between interstate pipelines and participated in national natural-gas-market hubs in which interstate and intrastate markets operated as one interconnected market. The Texas Pipeline Association (plaintiff) challenged FERC’s Posting Rule in the United States Court of Appeals for the Fifth Circuit.

Rule of Law

Issue

Holding and Reasoning (Smith, J.)

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