Opinion ID: 2407622
Heading Depth: 1
Heading Rank: 7

Heading: the commission's order in docket 510

Text: There is a disagreement among the parties hereto as to whether the Commission dismissed the applications of Austin et al. because it considered that it had no jurisdiction over the subject matter, or whether it dismissed the applications without prejudice and to hear and consider the problems in its Docket 520, announced the same day. In its 510 order, the Commission recognized that the Pennzoil suit had already been filed in Harris County to determine many of the title and contractual problems raised before the Commission, and that the matters were also before a federal court. The order did state that the Commission had no jurisdiction to decide the title questions. The order in Docket 510 also stated that the Commission is of the opinion that its legal duty and responsibility to protect the public interest extends statewide and that it can require gas utilities in Texas to augment or apportion gas supplies when it is necessary and practicable to do so. The closing paragraph is: Now, therefore, it is ordered that the subject petition is hereby dismissed without prejudice. In its Docket 520, promulgated the same day, the Commission stated that it considered it its duty to apportion gas between cities, towns and corporations; that the demand for gas in Texas exceeded the supply; and WHEREAS, The Railroad Commission of Texas is of the opinion it must determine (1) the reasonable amount of natural gas required to meet the needs of each category of consumer outlined in the Commission's Order of January 5, 1973, regarding curtailment priorities, in the public interest and to protect the human needs requirements of all Texas citizens; (2) the location and extent of all existing and impending natural gas shortages within the State of Texas; (3) and the location, amount, and availability of any source or supply of natural gas that could be used to alleviate these shortages; NOW THEREFORE IT IS ORDERED That notice be and is hereby given . . . that the Railroad Commission of Texas, will . . hold a hearing for the purpose of hearing evidence and in order to determine whether the available supply of natural gas can be voluntarily shared or apportioned on an equitable basis among the gas utilities to alleviate shortages, and if not, whether the need exists to establish a mandatory statewide apportionment program, and what rules, regulations, procedures and orders, if any, should be established to determine emergencies and lessen or prevent the adverse impact that a serious shortage of natural gas will have on the citizens and economy of Texas. All gas utilities were directed to submit sworn statements as to their gas reserves, their sales contracts, a complete tabulation of gas sales volumes indicating types of customers, the volume of gas delivered to each type of customer, the alternate sources of fuel other than gas of each utility, and their plans for future energy requirements. The City of Austin and others sought in Docket 510 to undo and allocate a particular package, or packages, of gas for themselves and for some of Lo-Vaca's other customers in a particular area. The Commission saw the problem as being statewide; and it has undertaken to gather information in its Docket 520 in the context of what can be done to allocate fairly the supply of gas throughout the state on a voluntary basis; and if that cannot be done, what mandatory orders should be promulgated. The Commission i s authorized to allocate Lo-Vaca's gas among cities, towns and corporations, and it is already doing so. It also has the jurisdiction and power to allocate TUFCO's gas, and the gas of all other gas utilities among cities, towns and corporations. Thus, the Commission is looking at the gas supply of Lo-Vaca and TUFCO, and every other gas utility in the State; and, as we understand it, it proposes to deal with the gas shortage, not as it affects South Central Texas alone, but according to the facts and effect of the shortage, and of its orders upon the entire State. That is the statutory authority of the Commission, and its manner of proceeding is entirely proper. The courts are not bound by the reasons given by Boards or Commissions in their orders, or by any particular ground made the basis of their rulings, provided there is a valid basis for what they do. It is no longer an open question that such order or ruling may be supported upon a ground different from that recited in the order . . .. Railroad Commission v. Magnolia Pet. Co., 130 Tex. 484, 109 S.W.2d 967, 971 (1937); Texas Employment Commission v. Hays, 360 S.W.2d 525 (Tex.1962). Turning again to the application of the City of Austin et al (Docket 510), the gas supply in the Lo-Vaca pipeline which they seek to have apportioned includes a substantial amount of gas which seems to be owned by parties which are not gas utilities. In view of the significant issues of ownership which are now in litigation, the Commission was justified in leaving to the courts the judicial resolution of just how much gas was available for Commission disposition. Much of the gas which was the object of the application was then being used to supply cities, people and industry in a very large portion of the state; and the Commission was justified in regarding the matter as requiring attention to the statewide implications. Conceding that there may be areas of concurrent jurisdiction between the courts and the Commission, the Commission is not required always to exercise its jurisdiction in a particular manner. We therefore hold that it was not error for the Commission to dismiss its Docket 510 without prejudice and to proceed with its Docket 520.