Opinion ID: 156355
Heading Depth: 2
Heading Rank: 7

Heading: Jury Instruction Regarding FERC Order 94

Text: 106 At trial, Conoco contended that FERC Order 94--which prior to deregulation in 1985, authorized sellers, under certain conditions, to recover PRC's in addition to the gas sale price fixed by law--authorized Conoco to exclude PRC's after deregulation under the language of the gas contracts. Conoco introduced exhibits and testimony explaining Order 94, its compliance with the order, and its belief that the order permitted it to deduct the ten cents per unit it deducted here. See Appellant's App. Vol. IV at 1156-57, 1237-45; Appellee's Supplemental App. at 290-93. Okland disputed Conoco's compliance with the order and argued that the order could not have authorized the exclusions after deregulation. See Appellant's App. Vol. III at 924-35, 980-84, 989-90, 1037-38; Appellee's Supplemental App. at 170-71. 107 At the jury instruction conference, Conoco asked the court to give proposed Instruction No. 10, which explains Order 94 as follows: FEDERAL REGULATION 108 At the time plaintiff and defendants first entered into their contracts, they were both subject to regulation by the Federal Energy Regulatory Commission (FERC). The rules adopted by FERC authorized defendant to recover production related costs of up to $0.15 per thousand cubic feet (MCF) of gas from defendant's purchasers retroactive to July, 1980. 109 Appellant's App. Vol. I at 13. The district court did not err in refusing to give the instruction. The instruction is correct in stating that the parties were subject to regulation at the time of the initial contract formation. However, the rest of the instruction would have misled the jury because it implies both that Conoco actually met the requirements of the order and also that the order did, in fact, authorize Conoco to recover PRC's under the contracts after deregulation. The instruction would not have aided the jury in evaluating the impact of Order 94 on the case but would have merely confused the issues.