Opinion ID: 349481
Heading Depth: 2
Heading Rank: 3

Heading: Reasonable

Text: 35 Because the order promulgating Form 64 originated in a policy decision of the agency and not as the outgrowth of factual determinations, the standard of review is whether the agency's action was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. 5 U.S.C. § 706(2)(A) (1967). Under that standard we determine whether the decision was based on a consideration of the relevant factors and whether there has been a clear error of judgment. Bowman Transportation, Inc. v. Arkansas-Best Freight System, Inc., supra, 419 U.S. at 285, 95 S.Ct. at 442, 42 L.Ed.2d at 455. Our scope of review is narrow, see Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. at 416, 91 S.Ct. at 824, 28 L.Ed.2d at 153, and we must defer to the FPC's exercise of its expertise, see Permian Basin Area Rate Cases, 390 U.S. 747, 767, 88 S.Ct. 1344, 1360, 20 L.Ed.2d 312, 336 (1968); FPC v. Hope Natural Gas Co., 320 U.S. 591, 602, 64 S.Ct. 281, 288, 88 L.Ed. 333, 344 (1944). 36 The regulatory need for the data sought by Form 64 has not dissipated, as the petitioners contend, because the Ninth Circuit in Union Oil set aside the Orders adopting and implementing companion Form 40 (Orders Nos. 526 and 526-A). Although the FPC originally designed Form 40 and Form 64 for use with Form 45 as part of an integrated data collection system, the present unavailability of reliable reserve data by use of Form 40 does not destroy the value to rate making of Form 64, from which can be obtained valuable information about production, expenditures, and exploration and development activities. 37 Comparing this case with Union Oil underscores the reasonableness of the agency's actions. The GAO certified the proposed form for use, as required by the Federal Reporting Services Act, 44 U.S.C.A. §§ 3501 et seq. (1969 & 1977 supp.). But, most important, the FPC did not treat the objections raised against proposed Form 64 in a summary or cursory fashion as it did those raised against proposed Form 40 in Union Oil. 542 F.2d at 1037 & 1042-43. Rather, the FPC extensively altered its questionnaire to alleviate problems raised by producers. Among other things, the FPC (1) reduced the duration of the cost data series needed for trending from 10 to 5 years, (2) eliminated the requirement to report data on an area as well as a national basis, (3) eliminated the portion of Form 64 that overlapped with Form 40, (4) exempted producers whose annual production was at or under 250,000 Mcf, (5) granted additional time to file completed questionnaires, (6) modified the form in which data was to be reported for present and past years, and (7) altered its position on the availability of Form 64 data to the public. 38 The FPC did not change every feature of Form 64 that some producers found objectionable, nor respond to all of their suggestions and criticisms. It was not required to do so. Cf. Portland Cement Ass'n v. Ruckelshaus, 158 U.S.App.D.C. 308, 327, 486 F.2d 375, 394 (1973), cert. denied, 417 U.S. 921, 94 S.Ct. 2628, 41 L.Ed.2d 226 (1974). The FPC's behavior does reflect a sensitivity to producer concerns. (G)iven an essentially legislative task to perform, (the FPC) has carried it out in a manner calculated to negate the dangers of arbitrariness and irrationality. Alabama Ass'n of Insurance Agents v. Board of Governors of the Federal Reserve System, 533 F.2d 224, 237 (5th Cir. 1976), quoting Automotive Parts & Accessories Ass'n v. Boyd, 132 U.S.App.D.C. 200, 208, 407 F.2d 330, 338 (1968). Reasonableness requires no more. 39