Opinion ID: 362301
Heading Depth: 1
Heading Rank: 4

Heading: review of denial of a hearing prior to conditional authorization

Text: 101 The FERC's authority to authorize conditionally Northwest's contracts stems from two statutes, the ANGTA and the Natural Gas Act. This dual system of regulatory control raises the possibility of two types of judicial review. 131 Upon closer examination of the ANGTA, however, we find that Congress has foreclosed that possibility, and has mandated judicial review solely under the ANGTA. 132 Section 10 of the ANGTA provides: 102 Notwithstanding any other provision of law, the actions of Federal officers or agencies taken pursuant to section (9) of this Act, shall not be subject to judicial review except as provided in this section. 133 103 We already have determined that Northwest's proposed importation of Alberta gas is related to the ANGTA, as provided in section 9 of the Act. 134 Therefore, the FERC necessarily acted pursuant to section 9 in conditionally authorizing Northwest's import contracts, and the Commission's actions are subject to exclusive judicial review under section 10 of the ANGTA. Under these circumstances, we dismiss for lack of jurisdiction Midwestern's and Michigan Wisconsin's petitions for review filed under section 19(b) of the Natu ral Gas Act. 135 We review only Midwestern's complaint filed under the ANGTA. 104 Review under the ANGTA does not undercut the quality of the Commission's action under the Natural Gas Act, because Congress envisioned that agencies would act pursuant to provisions of the ANGTA, while at the same time those agencies would issue certificates or authorizations to the fullest extent permitted by the Provisions of law administered by such officer or agency. 136 The scope of our review under the ANGTA, however, is far more restricted than that under the Natural Gas Act. Such a limitation is in keeping with the congressional purpose of expediting procedures in the selection construction, and initial operation of the ANGTA. 137 This Court is to decide, in the first instance, claims alleging that an action will deny rights under the Constitution of the United States, or that an action is in excess of statutory jurisdiction, authority, or limitations, or short of statutory right. 138 The intent of this provision is elucidated in a House Report that notes: 105 The Court (of Appeals for the District of Columbia Circuit) is to look to see if the action is taken within the agency's authority. It is not intended that the Court would have jurisdiction to look behind the agency decision to examine its reasonableness or determine whether it is adequately supported by the record of any proceedings as may have occurred before the agency. 139 106 This limitation on the Court's reviewing authority is significant. When an agency has exercised its discretion, as the FERC has done in this case, we may not consider the reasonableness of that action or the substantiality of the evidence supporting it. 140 As long as the FERC has acted within relevant statutory and constitutional bounds, we must affirm its action.
107 The only issue ripe for review is the challengers' claim that the FERC's denial of a hearing prior to authorizing conditionally Northwest's contracts was beyond its statutory authority and violative of the parties' rights. Midwestern, as the sole complainant in this case, has standing to raise this claim because it has alleged a judicially cognizable injury in fact 141 in the denial of a hearing allegedly required under the Natural Gas Act. In addition, Midwestern is within the zone of interests 142 to be protected by the ANGTA because it has filed a claim alleging that the FERC's failure to hold a hearing has denied rights under the Constitution and has exceeded the Commission's statutory authority. 143 108 Midwestern and several intervenors claim that they have a statutory right to a hearing under section 3 of the Natural Gas Act, which provides: 109 (N)o person shall . . . import any natural gas from a foreign country without first having secured an order of the Commission authorizing it to do so. The Commission shall issue such order upon application, unless . . . it finds that the proposed . . . importation will not be consistent with the public interest. The Commission may by its order grant such application, in whole or in part, with such modification and upon such terms and conditions as the Commission may find necessary or appropriate, and may from time to time, after opportunity for hearing, and for good cause shown, make such supplemental order in the premises as it may find necessary or appropriate. 144 110 They interpret this section as requiring that a hearing be held before a permit is granted, but they ignore the distinction between an original authorization order and a supplemental order. Section 3 mandates a hearing before the Commission issues a supplemental order, subjecting previously authorized imports to additional terms and conditions. 145 Section 3 does not mandate a hearing before the Commission authorizes the application in whole or in part. When the Commission intends to authorize an application, it shall issue its authorization order, and need not hold a hearing unless it intends to deny authorization of a proposed import. In the present case, the Commission authorized Northwest's import application in part by finding that the imports generally are in the public interest. No hearing was required prior to this conditional authorization. 111 On a constitutional level, the demands of due process do not require a hearing, at the initial stage or at any particular point or at more than one point in an administrative proceeding so long as the requisite hearing is held Before the final order becomes effective. 146 In the present case, we have explained that the Commission has made a final, though presently unreviewable decision that the imports generally are in the public interest under section 3 of the Natural Gas Act. 147 The Commission has not granted final authorization for Northwest's proposed imports under section 3, however, because it has not received all the necessary documents. 148 Furthermore, final authorization for all aspects of Northwest's import application cannot be granted until the Commission completes proceedings under section 7 of the Natural Gas Act. Therefore, no final order as to Northwest's import application has yet become effective. A hearing must be granted before such final order is considered. Until that stage of the proceedings is reached, the Commission is justified in dispensing with a hearing.