Amicus Curiae Brief — Federal Energy Regulatory Commission v. United States (Nos. 89-1453, 89-1452)

Supreme Court, U.S.

FILED

‘ais cs AUG 9 lov

Nos. 89-1452, 89-1453 F. SPANIOL, JR.

— CLERK

IN THE

SUPREME COURT OF THE UNITED STATES

Ocroser Term, 1990

MOBIL OIL EXPLORATION & PRODUCING

SOUTHEAST, INC., et al.,

Petitioners,

Vv.

UNITED DISTRIBUTION COMPANIES, et ai.,

Respondents.

FEDERAL ENERGY REGULATORY COMMISSION,

Petitioner,

Vv.

UNITED DISTRIBUTION COMPANIES, et ai.,

Respondents.

On a Writ of Certiorari to the

United States Court of Appeals

For the Fifth Circuit

BRIEF OF THE

WASHINGTON LEGAL FOUNDATION

AS AMICUS CURIAE

IN SUPPORT OF PETITIONERS

R. Charles Gentry Daniel J. Popeo

John R. Hays, Jr. Richard A. Samp

HAYS & ANSON (Counsel of Record)

Suite 2700 WASHINGTON LEGAL

600 Congress Ave. FOUNDATION

Austin, TX 78701 1705 N Street, N.W.

(512) 478-4040 Was! :ngton, DC 20036

(202) 857-0240

August 9, 1990

575

ii

QUESTION PRESENTED

Amicus will address the following issue:

Whether the court of appeals improperly relied

upon portions of the legislative history of the

Natural Gas Policy Act of 1978 to override the plain

meaning of the statute and set aside action by the

Federal Energy Regulatory Commission consolidating all

vintages of old gas and establishing a higher ceiling

I.

TABLE OF CONTENTS

THE COURT OF APPEALS’ USE OF

ISOLATED FRAGMENTS OF LEGISLATIVE

HISTORY TO DEFEAT THE PLAIN

MEANING OF SECTIONS 104(bX2) AND

106(c) AS A MEANS OF DETERMINING

LEGISLATIVE INTENT VIOLATES

CONTROLLING PRINCIPLES OF LAW

ESTABLISHED BY THIS COURT ........

THE COURT OF APPEALS’ IMPROPER

RELIANCE UPON PORTIONS OF THE

NGPA’S LEGISLATIVE HISTORY TO

VACATE ORDER 451 IMPOSES

UNREASONABLE BURDENS AND

UNREASONABLE UNCERTAINTY ON THE

NATURAL GAS INDUSTRY AND COULD

LEAD TO UNFAIR CONSEQUENCES NOT

REASONABLY FORESEEABLE FROM A

THOROUGH EXAMINATION OF THE

DEED ceca ctw eeSSEVS Serb b bode

iv

Il. THE COURT OF APPEALS IGNORED

BINDING PRECEDENT OF THIS COURT BY

REFUSING TO GIVE DEFERENCE TO

COMMISSION ACTION WHEN THE

LEGISLATIVE INTENT OF THE NGPA WAS

PUT IN ISSUE BY THE CONFLICT

BETWEEN STATUTORY LANGUAGE AND

LEGISLATIVE HISTORY ............. 19

ee eer Bee a 21

v

TABLE OF AUTHORITIES

Page

Cases:

American Tobacco Co. v. Patterson, 456 U.S. 63

CR AA Ww el ¥RUTWIATS /GL% © 11, 13

Anderson v. Wilson, 289 U.S. 20 (1933) ....... ll

Caminetti v. United States, 242 U.S. 470 (1917) .. 15

Chevron U.S.A., Inc. v. Natural Resources Defense

Council, Inc., 467 U.S. 837 (1984) ... 18, 19, 20

Consumer Product Safety Comm'n v. GTE Sylvania,

Inc., 447 U.S. 102 (1980) ............ 11, 13

Edwards v. Aguillard, 482 U.S. 578 (1987) ...... 16

FPC v. Hope Natural Gas Co., 320 U.S. 591

OE Seb he. a | ere 15

FPC v. Natural Gas Pipeline Co., 315 U.S. 575

CED Ads Aci dh GWE CR DIET RRN INI 2 oo 15

Griffin v. Oceanic Contractors, Inc., 458 U.S.

RS ele ee ee oe 8

Immigration and Naturalization Service v. Cardoza-

Fonseca, 480 U.S. 421 (1987) ......... 16, 17

K Mart Corp. v. Cartier, Inc., 486 U.S. 281

SES 's BWSR Mabe Kale Wb eo 5, 18, 20

Mobil Oil Co. v. FPC, 417 U.S. 283 (1974) ..... 15

Mobil Oil v. F.E.R.C., 885 F.2d 209 (Sth

GE nd 63 © oR Gla aiehee oid 0 0 oo 4,7,8

Permian Basin Area Rate Cases, 390 U.S. 747

0 SE Oe ey he ee 15

Rubin v. United States, 449 U.S. 424 (1981) ..... 13

Schwegmann Brothers v. Calvert Distillers Corp.,

Ee a Ok ee 17

Tennessee Valley Authority v. Hill, 437 U.S. 153

RS Oy eae 16

United States v. Boyle, 469 U.S. 241 (1985) ..... 20

United States v. James, 478 U.S. 597

EN, acta did Uva se OC ae aee ore 6.4 « 11, 12, 13

vi

United States v. Locke, 471 U.S. 84

sie h.¢ SARE OOta oo ee 5 0 o 12, 15, 16

Statutes:

Natural Gas Policy Act of 1978,

CS EE ee passim

§ 104(b)(2), 15 U.S.C. § 3314(b)(2) .. . 3, 4, 6, 7, 13,

15, 19, 21

§ 106(c), 15 U.S.C. § 3316(c) ....... 3, 4, 6, 7, 13,

14, 15, 19, 21

Miscellaneous:

117 Cong. Rec. 36,509 (1971) (Statement of

EEE 10

Brief of Respondents, United Distribution

Companies, et al., for Certiorari .......... 17

Note, Legislative History of the Natural Gas

Policy Act, 59 Tex. L. Rev. 101 (1980) ...... 7

Frankfurter, Some Reflections on the Reading of

Statutes, 47 Colum. L. Rev. 527 (1947) . 8, 11, 12

Holmes, The Theory of Legal Interpretation,

12 Harv. L. Rev. 417 (1899) ......... 8, 9, 17

Starr, Observations About the Use of Legislative

History, 1987 Duke LJ. 371 (1987) ....... 10

Sunstein, /nterpreting Statutes in the Regulatory

State, 103 Harv. L. Rev. 405 (1989) ...... 8,9

IN THE

SUPREME COURT OF THE UNITED STATES

Ocroser Term, 1990

Nos. 89-1452, 89-1453

MOBIL OIL EXPLORATION & PRODUCING

SOUTHEAST, INC., et ai.,

Petitioners,

Vv.

UNITED DISTRIBUTION COMPANIES, et ai.,

Respondents.

FEDERAL ENERGY REGULATORY COMMISSION,

Petitioner,

v.

UNITED DISTRIBUTION COMPANIES, et ai.,

Respondents.

On a Writ of Certiorari to the

United States Court of Appeals

For the Fifth Circuit

BRIEF OF THE

WASHINGTON LEGAL FOUNDATION

AS AMICUS CURIAE

IN SUPPORT OF PETITIONERS

INTEREST OF THE AMICUS CURIAE

The Washington Legal Foundation (WLF) is a

national nonprofit public interest law and policy center

58 U.S.L.W. 3614 (March 26, 1990); Ingersoll-Rand Co.

v. McClendon, cert. granted, 58 J.S.L.W. 3657 (April

16, 1990); Pacific Mutual Life Insurance Company v.

Haslip, cert. granted, 58 US.L.W. 3628 (April 2,

1990); Kansas and Missouri v. Utilicorp United Inc., 58

U.S.L.W. 4898 (June 21, 1990); HJ., Inc. v. North-

western Bell Telephone Co., 109 3.Ct. 2893 (1989); Tull

v. United States, 481 U.S. 412 (1987); and Pacific Gas

& Electric Co. v. Public Utilities Commissior of

California, 475 U.S. 1 (1986).

WLF believes that individuals and businesses are

entitled to rely on the plain language o* a statute.

consents ase on file with the Clesk of the Court.

STATEMENT OF THE CASE

Amicus is, in the interest of brevity, providing only

a condensed statement of the facts of this case. Amicus

adopts by reference the statements of facts contained in

Petitioners’ briefs.

vintages of pre-1977 gas into a single vintage with

i to

save 11 trillion cubic feet of natural gas that would

reduce overall prices to consumers. 51 Fed. Reg. at

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Finally, amicus submits that the

failed to utilize the appropriate standard of review of

nounced in Chevron US.A., Inc. v. Natural Resources

Defense Council, Inc., 467 U.S. 837 (1984

agency action by disregarding the two-prong test an-

noua ib che Guides of Ot

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with the

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None of the cited floor statements directly addressed the

question of whether the NGPA prohibited or intended to

hibit the C ission from raising the ceili

for old gas as

of Sections

USE OF ISO-

6

ARGUMENT

HISTORY TO DEFEAT THE PLAIN MEAN-

response to a statute the majority would necessarily

LATED FRAGMENTS OF LEGISLATIVE

have had to find ambiguous.

IL THE COURT OF APPEALS’

ING OF SECTIONS 104(b)(2) AND 106(c) AS A

MEANS OF DETERMINING LEGISLATIVE

Section 104(b)(2) of the Natural Gas Policy Act of

1978, which in all relevant respects is identical to

INTENT VIOLATES CONTROLLING PRIN-

Section 106(c) of the same Act, provides:

“

CIPLES OF LAW ESTABLISHED BY THIS

COURT

Commission) otherwise subject to the preceding

provisions of this section, if such price is--

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int in the search for legislative intent

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legislative intent, based on whether the source is in-

cluded in the formal language of a statute. At bottom,

In the instant case, the majority below usurped the

legislature’s assigned role by concluding, in contradic-

tion to Congress’ own enacted words, that four senators

0 ee ese oetnet Ps

States v. James, 478 U.S. 597 (1986); American

Tobacco Co. v. Patterson, 456 U.S. 63 (1982); Rubin vy.

United States, 449 U.S. 424 (1981); Consumer Product

Safety Comm'n v. GTE Sylvania, Inc., 447 US. 102

Il. THE COURT OF APPEALS’ IMPROPER

RELIANCE UPON PORTIONS OF THE

NGPA’S LEGISLATIVE HISTORY TO

VACATE ORDER 451 IMPOSES UNREASON-

ABLE BURDENS AND UNREASONABLE

UNCERTAINTY ON THE NATURAL GAS

INDUSTRY AND COULD LEAD TO UNFAIR

CONSEQUENCES NOT REASONABLY FORE-

SEEABLE FROM A THOROUGH EXAMINA-

TION OF THE STATUTE

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