Opinion ID: 362301
Heading Depth: 3
Heading Rank: 1

Heading: Decision on Contract's Resale Restriction

Text: 75 The Northwest-Pan-Alberta contracts provides that the seller, Pan-Alberta, may terminate the contracts prior to commencement of construction of new facilities if Northwest resells the imported gas to any purchaser not participating in the construction of the Alaska portion of the ANGTS. 82 An intervenor contended that this resale restriction is an illegal restraint of trade under section 1 of the Sherman Act, and that it violates section 13(a) of the ANGTA by preventing transporters of natural gas from full access to the ANGTS on the basis of ownership of the system. Although that intervenor later withdrew its complaint, the Commission chose to address the charge. Relying partly on the assumption that the resale provision is required by a Canadian governmental or provincial policy, the Commission found that the provision does not violate either the Sherman Act or the ANGTA. 83 The issue now facing the Court is whether such a Canadian policy exists a purely factual question that does not lend itself as readily to prompt judicial review as a purely legal question. 84 76 Moreover, the FERC's decision does not preclude a subsequent submission of evidence negating the assumed fact. On the contrary, the Commission freely admitted that it is willing to reconsider the antitrust implications of the contracts, and presumably the ANGTA determination as well, should Canadian policy, if any, differ from the FERC's assumption. 85 The existence of a Canadian policy requiring the contracts' resale restriction is in fact a condition, the failure of which may prompt the Commission to modify or abandon its present position on the validity of the resale restriction 86 and to reexamine its findings under section 3 of the Natural Gas Act. 87 We therefore conclude that the decisions on the resale restriction do not represent the Commission's final position, and judicial review at this time would be premature.