Document: 486 U.S. 204 108 S.Ct. 1765 100 L.Ed.2d 238 FEDERAL ENERGY REGULATORY COMMISSION, Petitioner,v.MARTIN EXPLORATION MANAGEMENT COMPANY et al. PUBLIC SERVICE COMMISSION OF the State of NEW YORK, al., Petitioners, v. MARTIN Nos. 87-363, 87-364. Argued March 28, 1988. Decided May 31, Syllabus To cover situation overlapping provisions Natural Gas Policy Act 1978 fixing price ceilings for sales various categories natural gas and providing phased deregulation, § 101(b)(5) states that if any qualifies under more than one provision maximum lawful or exemption from such a with respect to certain gas, "the which could result in highest shall be applicable." The Federal Energy Regulatory Commission (FERC) promulgated regulation interpreting (and 121, relates deregulation) mean is qualified both deregulated regulated treatment would treated as deregulated. adversely affected producers who had entered into long-term contracts clause setting (near ceiling) were another (on basis market price, calling renegotiation) Because plunged below ceilings, stood reap higher contractual prices their was it Numerous petitioned review FERC's regulation. Court Appeals rejected interpretation adopted producers' position unambiguously requires applicable category which, at particular moment, garners producer contract its gas. In explaining this holding, also ruling "new tight formation gas" subject 107(c)(5) automatically deregulation new §§ 102(c) 103. Held: 1. erred rejecting 101(b)(5). statute's plain meaning governs. It provides applicability "could" not "will" (depending on actual daily prices) each producer. Section 101(b)(5)'s words call simple comparison between permitted by another: ceiling, provision. When sets no ceiling all—i.e., deregulates—that court concluding reading word ordinary conditional makes so little sense must converted "will." statute does refer but rather generic parties precontract state: allows conceivable applies. calls statutory provisions, ones, nothing legislative history suggests Congress wanted classification turn terms. Moreover, Appeals' contrary whole thrust Act, has effect turning scheme system supports producers. creates chaotic wherein type varies depending producer, contract, current price. Pp. 209-211. 2. overturning "new" gives FERC authority make eligible, special high-cost pricing, "produced . conditions [FERC] determines present extraordinary risks costs." There objectionable about ruling, merely recognizes gas"—which file same information (in addition other information) filed qualify either 103—is subset latter sections. conclusion based 101(b)(5), above, erroneous portions history. Nor rule intrude jurisdiction state federal agencies determinations 503. made determinations, promulgated, pursuant ample authority, definitional determination proceedings. 211-213. 813 F.2d 1059 (CA 10 1987), reversed. BRENNAN, J., delivered opinion Court, all Members joined, except WHITE, took part consideration decision cases. Richard G. Taranto, Washington, D.C., petitioner No. 87-363. A. Solomon, petitioners Jeffrey S. Davidson, respondents. Justice BRENNAN Court. 1 These cases involve covered 1978—one declaring Petitioners contend should classified United States Tenth Circuit held falls whichever affords conditions. invalid 103 Act. We reverse issues. 2 * From 1938 1978, Government only interstate market. By 1970's, however, shortages developed because get unregulated intrastate markets. Two conflicting solutions developed: Senate passed bill deregulating 2104, 95th Cong., 1st Sess. (1977); House extending H.R. 8444, (1977). Conference Committee struck compromise. H.R.Conf.Rep. 95-1752 (1978), U.S.Code Cong. & Admin.News p. 7659. (Act), Pub.L. 95-621, 92 Stat. 3351, 15 U.S.C. 3301 seq. 3 defines spanning two-part deregulation. First, establishes wellhead first vary gradually increase over time. 101-110, 3311-3320. Second, three-stage elimination categories: "high-cost" eliminated 1979, "old" 1985, 1987. See 3331. 4 Many these overlap. Recognizing overlap, provided 3311(b): "If title sale 5 anticipation 1985 121 18 CFR 270.208 (1987). 6 This preference deregulatory many types contracts. Typically, typically close ceiling; left open renegotiation. 1984 7 Dissatisfied regulation, numerous Circuit. adopting 107(c)(5), 3317(c)(5), 103, 3312, 3313. F.2d, 1069-1070. granted certiorari. 484 962, 449, 98 390 II 8 "The decides issue presented." Bethesda Hospital Assn. Bowen, 485 399, 403, 1255, 1258, 99 460 (1988). (emphasis added). will think "could result" thus applies uniformly selling within provisions. 9 straightforward ground that, although theory rise without limit, 'could' gas." 1068. reasoned "[s]uch an understanding 'could'—one considers theoretical possibilities—renders meaningless." Ibid. Rather, concluded: " 'Could' context how actually occur." Under arrangement results moment producer's disagree perfect have mind fact prior entering always price—i.e., result—without one. After all, party reason simply been imposed; can impose direct legal restraint above ceiling. Cf. 101(b)(9), 3311(b)(9) (declaring enforceable they do exceed applies). difficulty language caused focus postcontract situation, where contain clauses perverse increasing when imposed. doubt seriously enacted wished sure interacted mandate possible. Certainly mind. 11 Indeed, evidence intent create producer-assistance program. compromise: those supporting opposed thought allow charge excessive prices. Not participant process suggested receive afford them. operating assumption most favorable regime consideration. See, e.g., 124 Cong.Rec. 28633 (1978) (statement Sen. Jackson) (describing economic incentive"). 12 are moreover reluctant read making day changes. phrased general way implies fitting same, normally expect regulatory apply varying fashion. logic pursued, then, even fell two categories, require category. see inferring intended disuniformity administrative difficulties entail. III 13 overturn formation" 3312(c), eligible pricing Pursuant defined "(i) Which (as section 102(c)), OCS qualifying 102(d)), produced through onshore production well 103(c); 14 "(ii) designated surface drilling began after July 16, 1979." 271.703(b)(2) proceeding below, did address Outer Continental Shelf 102(d), 3312(d), ruled "[i]n order tight-formation information, 102 determination. ., implicitly meets qualifications regardless whether explicit time made." 49 Fed.Reg. 46874, 46880 (1984). 16 defined, objections allowing qualification second interfere what inferred Congress' give right select desired. 1069. bases intent. One we reject above. history, governmental affirmative obligation identify up designations want. 1070 (quoting 29109, 38363-38364 (1978)). But declined investigative duties hardly means want adopt rules classifying presented hearings. 17 respondents argue intrudes 503, 3413. FERC, determinations. do. broad define treatment, 503 prescribe manner substantiation review. And 501, 3411, terms "such orders may find necessary appropriate carry out functions." For foregoing reasons, judgment 19 Reversed. 20 WHITE

Category: 7