Brief in Opposition — United Gas Pipe Line Co. v. Federal Power Commission

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“TABLE OF CITATIONS ©

Cases:

Continental Oil Co., Docket’ ‘Nos. G-6946 ot

6949, et al., ‘order issued January, 4, 1956__ 3

Continental Oil Co,, 29 FPC 525, isFPC1650. 4

J. M. Huber Corporation v. ‘Federal Power

Commission, 236 F.2d 550, certiorari denied,

BE Se AA oie veneuns i ots nse ale gute ocits 7

Sun Oil Co. v. Federal Power Commission, 364

EAM OM oh sessisrs diiack ewaboeeisa plathi seh sanca neaie. ——

Sunray Mid-Continent Oil Co. v. Federal

Power Commission, 364 U.S. 137__.._--- 6, 7, 8,9

_ Thompson v. Texas Mexican R. Co., 328 U.S.

’ VA iat iste anche Mase aia eee 8

United Gas Pipe Line Company, 14 FPC 582. 3,8

United Gas Pipe Line Co. v. Memphis Light,

Gas and Water Division, 358 U.S. 103___--- a)

United Gas Pipe Line Co. v. Mobile Gas Corp.,

7: A AA, A ss oc higaitgh = tag pa hoe dentate tice arucain a

ry

Statutes and sia

Natural Gas Act, Feta 41, 1938, c. 556, 52

Stat. 821-833, as amended, 15 U.S.C. 717-

MEG tN CE RE. en k Se Sg 13

Section 1(b), 15 U.S.C. 717(b)..------- 2, 5,13

Section 4,15 U.S.C. 717¢_--.-------.-- 2,13

Section 5, 15 U.S.C. 717d._..-.----2:-- 2

Section 7, 15 U.S.C. 717f._..-.-.---.-- 2

Section 7(b), 15 US.C. qeet) » 5, 6, 7, 9, 10, 16

Section 16, 15 U.S.C. 7170. __---------- 2,17

- Section 19, 15 U.S.Q. 717r-_.=_..---.--- 2

Section 19(b), 15 U.8.Q. 717r(b)-. - ------ 17

Federal. Power Commission Rules of Practice

and Procedure, Section 2.56, as amended,

-18 C.F.R. (Cum. Supp. 1965) ‘2.56 State-

ment. of General Policy No. ¢1-1, 24 FPC |

ea CaS gan PRS beertie. She x rts Sea ae 4.7

Fourth Amendment to Statement of Gen-

eral Policy, 26 FPC 661. -- erreninn tg 4,7

y |

3

o

Un the Supreme Oonrt of the Wied States

OctoprR TERM, 1965

No. 870 —

Unirep Gas Pree Line SanEAee 2 PRIITIONER

. v. . }

Frvupat re aire Cospasmesons AND

CONTINENTAL Om Company

ON PETITION FOR A WRI? OF OCBRTIORARI TO THE UNITED

STATES COURT OF. APPEALS FOR THE FIFTH CIRCUIT

BRIEF FOR THE FEDERAL POWER COMMISSION IN OPPOSITION

OPINIONS BELOW :

- The opinion of the court of appeals (Pet. App. A,

pp. 1a-22a) is reported at 350 F. 2d 689." The opin-

ions and orders of the Federal Power Comission are

reported at 31 FPC 1079 and 32 FPC 8. raga tis

| JURISDICTION. -! eae

~olltha judgmeaticof ‘emenunk: oh epetelenina attered

on September 8, 1965. A petition for rehearing was

denied on October 8, 1965... The petition for a writ of

certiorari was filed on January 3, 1966. This Court’s

jurisdiction is invoked under 28 U.S.C. 1254(1) and

(1)

es AA yee A

2

‘Section 19(b) of the Natural Gas Act, 15 U.S.C.

T17r(b).

ane hatin Res Pe Ne silt ne,

1. Whether Section 7 (b) of the Natural Gas Act

required petitibner, a purchaser ahi transporter of

natural gas sold in interstate-eommerce for resale, to

obtain Federal Power;;Commission approval of its

6 to discontinue purchases at the conclusion - a

a Whether the Commission could require petitioner

_ to continue’ purchase pas‘ at the filed’ rate pending

the filing of @n abandonment application under Sec-

tion TH) and decision thereon...

' STATUTES INVOLVED

The relevant portions of Sections 1, 4, 5, 7, 16 and 19

of the Natural Gas Act (15 U.S.C. 717a et seg.) are

set forth in the Appendix hereto, pp. 13-19, infra.

, CEATEMENT

, On. January, 22, 1953, Continental] Oil Company

(“Continental”), and United, Gas. Pipe Line, Com-

pany (“United”), exeeuted a contract forthe sale and

purchase of gas fromthe Johnson Bayou Field in

Cameron. Parish, Louisiana (R. 181). The contract

provided for a primary term of ten years, to continue

in effect: thereafter: on an enmedl basis) unless either

party ‘chose’ to: ‘terminate upon 80 days’ * notice (R.

196). From and after January 31,1958, the contract

. e- > ‘

es : an

oar gh eagle shoes $545!

reimbursement (R. 195).*

‘The Johnson Bayou Field is adjacent’ to: United’s

16-inch Mud Lake transmission line,’ which ‘extends

westward from Southwest Louisiana into’ the Beau-

mont, ‘Texas, area; / Continental agreéd to deliver’ the

gas here involved to a central point near this previ-

ously constructed line. To permit delivery, ‘Conti-

nental’ ‘eonstructed 4,400 feet: of 24-inch line, two

separators ‘and several storage tanks, while United

construdted. ‘a separator) al meter station; about 65

feet ‘of inch’ line’ and) valves?!) fe

' On! October ¥23, 1962, futediint the » vaibcadt,

Continental advised United that’ it' ¢hdse‘to’ terminate

the.contract at the end of ‘the primary termi,\ sie, on

January 31; 1963 (R.'397). After’attempts to nego-

tiate a new contract had failed, Coritinental filed with

the Commission a-supplement ‘to its: existing’ rate

schedule providing’ for a unilateral’ inerease’ in price

to 14 vents ‘per Mef ‘plus 1.75. cents for tax réimburse-

mae ier plerenagper tii pu

31, 1968 (R307-908). oii niogo. old

‘United objected’ to the Alig on the seivihint’ theit

Continental Had ino’ authority ‘té' make such: ‘a ‘uni-

CL eee A:

“On January 4, 1986, the Commission inmed Continental

G. 2046 and #940, 6t a, onder ionued January 4 1068 ‘Seo 18

FRC 1000, 7.4 62 128 0% forces und ¥O ‘Fagin

4 Qn: February, 25, 1955, the Conaminsion, iatned

for: Unitedie. eontinead: seemephetepiion etsana tenes head

Bayou Field) and 'the operation of the facilities} used: for.

transportation. United Gas Pipe Line Co., 14 FPC 582.

4

lateral’ change. ..The Commission, however, accepted

the increased rate filing since*it was not above the

area guideline price for increased rates, which was

then; as now, 14¢. plus tax reimbursement.’ The in-

creased rate was not suspended, and United’s applica-

tion for rehearing was denied. Continental Oil Co.,

29. FPC 525. United did not seek judicial review of

that order.

United thereafter notified ocitinenbial: that pur-

ohenee from the Johnson Bayou Field would cease as

. of 7:00 am., January 31, 1963 (R. 251, 398). On

February 1, Continental petitioned the Commission

to. direct . United “* * * to show cause why it

should not be required to continue to take deliveries

of gas produced by Continental in the Johnson Bayou

Field * * .* at the currently filed and effective,zate’’

and to order United to take. such. gas, during the

pendency of. such action (R. 242, 398). The Com-

mission directed United to show eause ‘‘why it should

not. be required to apply for and obtain the. permis-

sion and approval of the Federal Power Commission

before ceasing the operation of all or any portion of

the facilities heretofore operated by United to pur-

chase natural gas from Continental * * *”’ an 267-

271, 398-399).

'*The. Southern ‘Sivaiaianw guideline price announced on

October 25, 1960, for initial (new) service was 21.5¢ exclusive

of tax reimbursement.’ ‘This was changed on October 81, 1961,

to 21.25¢ inclusive of State taxes: Fourth Amendment to

' Statement of General Policy No. 61-1, 26 FPC 661. The

guideline price for rate changes has, sitite. September 28, 1960,

remain fixed at 14¢ exclusive: ‘of tax reimbursement of 1.75¢.

Statement of General Policy No. 61-1, 24 FPC 818.

—

5

After a full hearing, intermediate decision and

argument, the Commission held that United’s inten-

tion not to use, for an indeterminate time, the facili-

ties for the purchase of gas from Continental consti-

tuted an abandonment within the meaning of Section

7(b) of. the Natural Gas Act. Accordingly, it re-

quired United to resume purchasing gas: consistently

with Continental’s filed rate. schedule (R. 407, 408).

The court of, appeals sustained the Commission’ 8

order. a

ARGUMENT

1, The court of appeals correctly euthinel the Com:

mission’s conclusion that United was required by Sec-

tion 7(b) of the Natural Gas Act to obtain Commis-

sion approval before it could discontinue its purchases

from Continental. The Commission found that in ter-

minating its purchases, United had abandoned “juris-

dictional gas purchasing facilities” (R. 396, 407-408)

that had been ‘‘constructed: and operated; by United

for the sole purpose, of receiving Continental’s Johu- ~

son Bayou Field gas” and were ‘‘concededly. facilities

used for the ‘transportation of natural gas in. inter-

state comimerce’ within. Section 1(b)” (R.,396, 21.:1),

Although Seetion 1(b) does not explicitly bring within

the Commission’s regulatory powér the; purchase of

natural gas, it does give the Commission. authority.

over. ‘‘transportation of natural gas in interstate;com-

merece,” United was engaged in such transportation,

and.to the extent, that. it wished to terminate, this

phase of its operations it was required to obtain Com-

mission approval.

The Commission’s construction of Section 7(b) does

*

6

not conflict’ with’ ‘Sunray Mid-Continent Oil Co. v.

Federal Power Commission, 364 U.S. 137: ‘Indeed,

the’ reaions of policy stated by this Court in support

of its’ décision' in Sunray"and ‘in’ Sun Oi Co. v. Fed-

eral Power Commission, 864’ U'S"'170, ‘affirmatively

stipport' the resiilt ‘readhed here. For to allow United

to abandon its purchase and transportation’ of natural

_ gas’ without! Comniission! authorization ‘would’ effec-

tively prevent Continental’s‘continuéd sale of its gas

to the public, with the Same Mra ag effect * * *

upon the policies of the Act” that the Court noted

in ‘réawhihg its décision in’ Sunray: See 364 U.S. at

141-142) The interstate market would be deprived of

this ‘supply of@yas from’ Contitiéntal’s reserves with:

out the presétibed Commission finding “that the avail-

able ‘ ‘aupply '6f ‘natural! gas’ tsdepleted to the ‘extent

that the eontifuanes Gf ‘service is unwarranted, or that

the “presext or futuré' public eorivénience or necessity

it such abaridéninent:” ‘Section 7(b); pp: 16417,

a. * As'in' Sunray, the consequence would be that

is eonsumer’ ultimately would pay’ the bill for the ‘re-

arrangément”” of services as between the = hemi

drid-énother’ pipeline. 964 U.8.°at 143°)

“ifn “addition, unregulated ‘termindtion ‘by’ United of

its ‘avrarigemerit With Contimental would’ have other

~~ sétiotis “ practiced) ‘¢onsequences”’ on consumiers—quite

like the’ producér’s termination in’ ‘Sunray. “See 364

US atom,” ‘If United tate freely permitted to ter-

eget ‘new Aspegerernie mn ight’

Sette ED tty sax wrt Tess

© on on . “s * ‘ 7 . . . ‘

290 {d)5 1O1J99G4 TO MOU IEAM & Howey

a

7?

quired t6 make up for those abandoned would be tiade

at new-gas prices, which are normally higher. f

The fact that United was not required to obtain a

certificate of public conveniente and necessity to pur-

chasé gas does not, as petitioner contends (Pet. 9), en-

title it to discontinue the purchase and transportation

a8 soon as its contractual obligation terminates. Relf-

ing on J. M. Huber Corporation v. Federal Power Com-

mission, 236 F. 24 550 (C.A. 3), certiorari denied, 352

U.S. 971, the Commission held that even without such a

certificate, United’s facilities are ““‘dedicated to the

public use and cannot be abandoned absent a showing

under Section 7(b)” (R. 399, n. 5). The abaridon-

ment provision is not, by its terms, limited to those

holding: certificates, and the policy of the Act extends

to pipelines like United whether or not they’ possess

certificates. This position is not inconsistent with this

Court’s assumption in Sunray that a limited-time cer-

tificate would permit a producer to discontintie its op-

érations ‘at the certificate’s expiration. In that case,

tlé Court assumed only that approval of such a limita-

tion amounted to an authorization under Section 7(b)

* Thus, ,while. United was declining to take gas from Con-

tinental at the 15.75¢ guideline price (14.0¢ plus 1 5784 tax reim-

bursement) for changed rates in the Southern Louisiana aréa

involved (see Federal Power Commission Rules of Practice and

Procedu pie ders 18 C.F.B. (1961 revision, 1965 Supp.) § 2.56;

2 FPC 81 and 26 FPC 661), the record shows it entered into

soem Dar Paniliniee of, Gap 2 Peseet tongs Getwesy, 194 and

19.7. (BE. 23-27, 330). There are indications that these pur-

ses were not made to compensate for the termination of the

supply from Continental (#bid.), but this, of Rf Pein’ be

that could be more full; developed andoi

ment ennetng initiated by U: Vailed,

to abandon the .certificated service at the conclusion

of the certificated period.’ :

' . In any event, although the Commission did not a

on the terms of any certificate, United had, in fact,

obtained a certificate on February 25, 1955, for the

“continued transportation of natural gas” over the

facilities involved here. FPC Docket No. G-2818, 14

In a of the comprehensive purposes of the Nat-

mea Gas - Act, the Commission’ s ruling _ obviously

effectuates a desirable symmetry | between the obliga-

tions of sellers and purchasers subject to the Com-

Iission’s jurisdiction. . .United’s obligation . not, to

. terminate its purchase arrangements .without Com-

mission approval is the correlative of Continental’s

obligation not to cut -off. the source of supply. {In

analogous circumstances, this Court construed the

abandonment provisions of the Interstate Commerce .

Act, to apply not merely | to a carrier conducting the

| operations which were to be terminated but also to

the property owner over whose facilities the carrier

was conducting such operations. Thompson vy. Texas

_ Mexican R. Co., 328 U.S. 134, 144-145. 7

- 2, Since United was required ‘to dhthin'” Cécimnie-

sion approval. before abandoning its purchase. .ar-

"Nor does this Court's reference in Sunray to the seller’s’éon- =»

tinuing obligation in that case to deliver gas to the purchaser”

“on. the latter’s request” (364 U.S. at 155) support petitioner’s _

ras that 2 purchaser is free to abandon his purchases at

involved in Suncoy, to all for co additional supply of gas

7 e of the specified annual amount. 364 US. oa

Ye

~~ ae

a

ma “

‘ x

raligement with Continental, the’ Commission was

entirely justified in requiring United to continue its

purchaées at the outstanding lawful rate while an

application for abandonment, if any ‘were filed, was

being considered and determined. United objected to

the rate filed by Continental only on the ground that

it was unauthorized¥and not ‘because it was unjust,

unreasonable or discriminatory. It did not ask that ©

the sate be suspended or that it be collected subject to

refund. Having been filed arid not having been ‘sus-

pended by the Commission, Continental’s rate be-

came the lawful rate, atid United was required to

‘ abide by it until it received abandonment’ authoriza-

tion under Section 7 (b).

Nothing said by this Court in United Gas Pipe

Line Co. v. Mobile Gas Corp., 350 U.S. 332, is to- the

contrary. Before any agreement is entered ‘into,

sellers and buyers may, of course, negotiate as to

price, and the seller has no power\beyond that of an

offeror; he may set his price and then seek out “pro-

spective customers.” 350 U.S. at "843. But this

Court noted in both United Gas Pipe Line Go. ‘v.

Memphis Light, Gas & Water Division, 358 U.S. 103,

and in Sunray, supra, that if a contract authorizes

the filing of a new rate ex parte or if the contract

term expires, the seller may make rate changes with-

out the purchaser’s consent. See 358 U.S. at 112-113;

364 U.S. at 155. The purchaser, of course,:is not

left without rate protection. If the seller attempts té

raise his rate, the purchaser may attack it as unjust,

unreasonable, discriminatory or preferential, and

may seek to have it suspended or collected subject to ~~“ cE

iG

~

acfand.;, Alternatixaly, # purchaser may request per:

mission under Section 7(b) to discontinue the seller’s

gas. United invoked none of. these remedies, but

chose ingtead to attack the rate filing as impermissible

under the Act. The Commission properly rejected

that course.

Finally, we do not believe that the present decisiqn

will have a significant impact upon the price of gas

to the pipelines or ultimate consumers. Many pur-

‘chase contracts have already expired, but the present

case appears to be the first in which the parties have

failed to reach a further agreement upon the expira-

tion of the initial contract term. If producers do.file

higher rates at the expiration of contract periods,

pipelines and their customers may be protected from

undue inereases by the Commission’s. power (1) to

suspend the rates, and, after the expiration of the

statutory suspension period, to order refunds with

interest on any excessive amounts collected, and (2):

to authorize the pipeline to abandon its facilities if it

an demonstrate that its gas needs can be met from

cheaper sources.

> —<«

11

CONCLUSION

}

For the foregoing reasons the petition for a writ of

' certiorari should be denied.

Respectfully submitted,

THURGOOD MARSHALL,

Solicitor General.

Ricuarp A. SOLOMON, 3

General: Counsel,

Howarp E. WAHRENBROCK,

Solicitor,

Federal Power Commission.

FEBRUARY 1966.

APPENDIX

The Natural Gas Act, June 21, 1938, c. 556, 52 Stat.

821-833, as amended, 15 U.S.C. 717-717w provides in

pertinent parts:

NS Maladies

— * * * aa

(b) The provisions of this Act shall apply

to the transportation of natural gas in in-

terstate commerce, to the sale in interstate

commerce of natural for posal: for ultimate

public consumption for domestic, commercial,

industrial, or any other use, and to natural-gas

companies engaged in such transportation or

sale, but shall not apply to any other transporta-

tion or sale of natural gas or to the local distri-

bution of natural gas or to the facilities used

for such distribution or to the production or

gathering of natural gas.

Sec. 4. (a) All rates and charges made, de-

manded, or received by any natural-gas com-

pany for or in connection with the transporta-

tion or sale of natural gas subject to the juris-

diction of the Commission, and all rules and

regulations affecting or pertaining to such rates

or charges, shall be just and reasonable, and

any such rate or charge that is not just and

reasonable is hereby declared to be unlawful.

(b) No natural-gas company shall, with re-

ee al to any transportation or sale of natural

| ject to the jurisdiction of the Commis-

nt 7“ make or grant any undue preference

_or advantage to any person or subject any per-

son to any undue prejudice or disadvantage, or

| (18)

| =

14

(2) maintain any unreasonable difference in

rates, charges, service, facilities, or in any other

respect, either as. between localities or as be-

tween classes of service.

PR Bic Under suth rules and i aegis . the

prescribe, every na

apy, SH akall fe with the Ceraniscton, re chin

co e (not less than sixty days from the

date this Act takes effect) and in such form as

the Commission may designate, and shall keep

open in convenient form and place for public

inspection, schedules showing all rates and ~

charges for transportation or sale subject

to the fhe siirisdi ion of the Commission; and the

classifications, practices, and regulations affect-

ing such rates and charges, together with all

contracts which in any manner affect or relate

to such rates, charges, classifications, and

services.

(d) Unless the Commission otherwise orders,

rio , chaise iall be made by any natural-gas com-

pany in iny such rate, charge, classification, or

service, or in any rule, regulation, or contract

relating thereto, except after thirty days’ notice

to the Commission and to the public. Such

notice shall ‘be given by filing with the Com-

mission and keeping open for public inspection

new, schedules. stating plainly the change or

changes to be made in, the schedule or sched-

ules,then, in force and the time when the change

or changes will go into effect. The Commission,

for goed cause shown, may allow changes to

take effect without requiring the thirty days’

notice, herein provided for by an order specify-

ing the changes so to be made and the time

when they shall take effect and the.manner in

which they shall be filed. and published.

(e)- Whenever any such new seegne | is filed

the Commission shall have authority, either

upon complaint, of any State, municipality,

State commission, or gas distributing company,

or upon its own initiative without complaint,

16

at once, and if it so orders, without answer or

formal pleading by the natural-gas company,

but upon reasonable notice, to enter upon a

earing concerning the lawfulness of such rate,

charge, classification, or service; and, poms

such hearing and the decision theréon, the Com-

~ mission, upon filing with such schedules and de-

livering to the natural-gas company affected

eng Ab statement’ in bere Phe pommaen

or such suspension, may suspend the operation

of such schedule and defer the use of such rate,

charge, classification, or service, but not for a

longer peri five months beyond the time

when it would otherwise go into effect; and

after full hearings, either completed before or

after the rate, hares, classification, or service

goes into effect; the Commission may make such

orders with reference thereto as would be proper

in a Pp ing initiated after it had become

effective. If the proceeding has not been con-

cluded and an order made at the expiration of

the suspension period; on motion of the natural-

‘change of rate, ification, or service

shall' go into Sdtact. © Where increased rates or

sion may,. order, ‘tequire the natural-gas

company dy taentah a bond, to be approved by

~ the ‘Commission, to re any amounts or-

dered by the Commission, to'keep accurate ac-

counts in detail of all amounts received by

reason of such increase, specifying by whom

and in whose behalf such amounts were paid,

and,: upon completion of the hearing and de-

cision, to order such natural-gas company to

refund, with interest, the' portion of such in-

ary ei rates a oes by its ence found

not justi any hearing involving a rate

Brag! ree ht to be increased, the burden

of proof to show that the increased rate or

charge is just and reasonable shall be upon

the natural-gas company, and the Commission

&

16

> Shall give to the hearing and decision of such

- questions preference over other questions pend-

ing ward it and decide the same as. speedily

~ Sac 3. Ca) Whenever the Commission, after

"} had upon its. own motion or upon

pa of any State, municipality, State

commission, or gas distributing company, shall

_ find that any rate, charge, or elasaifieation de-

manded, observed, " charged, or collected by any

natural-gas company in connection with any

transportation or sale of natural gas, subject to

the jurisdiction of the Commission, or that any

_ Tule, regulation, practice, or contract affecting

such rate, charge, or classification is unjust,

unreasonable, unduly discriminatory, or prefer-

_ ential, the Commission shall determine the just

and reasonable rate, charge, classification, rule,

regulation, practice, or contract to be thereafter

_ observed and in force, and shall fix the same by

order: Provided, however, That the Commis-

sion shall have no power to order any increase

in any rate contained in the currently effective

schedule .of such natural-gas company on file

bt se the Commission, unless such inerease is in

_aécordance with a new schedule filed by such,

natural gas co pany; shat the Commission may”

order a. mticav aga f ere existing rates are un-

_ just, unduly rrnaclermse Eng preferential, other-

wise unlawful, or are not the lowest reasonable

rates.

* * * ; +. *

Sno. 7: 9:7. .%

»_(b) No natural-gas company shall abandon

all or any portion of its facilities subject to the

jurisdiction of the Commission, or any service

rendered by means of such facilities, without

the permission and approval of the Commission

first had and obtained, after due hearing, and

a finding by the Commission that the available

supply of natural gas is depleted to the extent

that the continuance of service is unwarranted,

or necessity permit, such; abandonment,

* @ay < * eo j

[52 Stat. 830 (1938); 15 U.S.C. § 7170}

‘ + eo * - =

17

or that the present or future publie eonvenience

Szc. 16. The Commission shall have power to |

perform any and all acts, and to prescribe, is-

sue, make, amend, and rescind such’ orders,

rules, and regulations as it may find necessary

or appropriate to carry out the provisions of

this Act. Among other things, such rules and

regulations may define accounting; technical,

and trade terms used in this Act; and may

prescribe the form or forms of all statements,

declarations, applications, and reports to be

filed with the Commission, the information

which they shall @¢ontain, and the time within

which they shall be filed. Unless a different

date is specified therein, rules and regulations

of the Commission shall be effective thirty days

after publication in the manner which the

Commission “shall prescribe. Orders of the

Commission shall be effective on the date and

in the manner which the Commission shall

prescribe. For the purposes of its rules and

regulations, the Commission may elassify per-

sons and matters within its jurisdiction and

prescribe different requirements for different

classes: of persons or matters. All rules and —

regulations of the Commission shall be filed

with its secretary and shall be kept open in

convenient form for public inspection and ex-

amination during reasonable business hours.

*

Suc. 19, ° * ° Ste

(b) Any party to a proceeding under this

Act aggrieved by an order issued by the

Commission in such proceeding may obtain a re-

view of such order in the court of appeals of

the United States for any circuit wherein

the natural-gas company to which the order

relates is located or has its principal place of

business, or in the United States Court of Ap-

18

posls for the District of Columbia ‘by filing in

such court, within sixty days after the order of

* the Commission upon the application for re-

-hearing,'’a written petition |p: that the

order, of the. Commigsion. be ified or set

-in. whole jor in part. A:-copy. of such

shall: forthwith be transmitted by the

See clerk of the court to.any member of the Com-

mission. and thereupon the Commission shall

file with. the court ‘the record upon which the

order complained of ,was entered, as provided

in section 2112 of title 28, United States Code.

Upon the filing of such petition. such court

|. shall: have jurisdiction, which upon the filing

of the veoiad with. it shall be. exclusive, to

affirm, modify, ‘or .set aside such order in

whole:.or in: part. No objection to.the order

of the, Sasiiiedken shall be considered by the

court .unless such objection shall have been

urged -before| the Commission in the applica-

tion ary rehearing unless there is reasonable

groune kor failure, so'to do... The finding of the

ion as to the facts, if supported by

substantial evidence, shall be conelusive. If

any party shall apply to the court for leave to

me additional. evidence, and shall show to

the satisfaction of the court that such addi-

tional evidence is material and that there were

reasonable grounds for. failure to adduce such

evidence in the proceedings before the Commis-

sion, the: court may order such additional evi-

dence to be taken before the Commission and

_ to be adduced upon the hearing in such man-

ner and upon such terms and conditions as to

the court may seem proper. The Commission

may modify its findings as to the facts by rea-

ea oF the ” dditional avidenes so taken, and it °

shall. file with the court such modified or new

findings; which if supported by . substantial

evidence, shall be conclusive, and its. recom-

fing dation, if any, for the modification or set-

B aside of the original order. The judg-

19 —

ment and decree of the court, affirming, mod-

ifying, or setting aside, in whole or in

any. such order of the Commission shall be

ject to review by the Supreme Court of

the United States upon certiorari or certifica-

tion as provided in [former] sections 239 and

240 of the Judicial Code, as amended (U.S.C.,

title 28 [sec. 1254]).

U.S. GOVERNMERT PRINTING OFFICE: 1966