Document: 376 U.S. 515 84 S.Ct. 861 11 L.Ed.2d 878 FEDERAL POWER COMMISSION, Petitioner,v.H. L. HUNT et al. No. 273. Argued March 2, 1964. Decided 30, Richard A. Solomon, Washington, D.C., for petitioner. F. Generelly, respondents. Mr. Justice CLARK delivered the opinion of Court. 1 The issue in this case is whether Federal Power Commission, when granting an application a temporary certificate authorizing sale natural gas interstate commerce, can impose condition that applicant shall not increase its certificated price pending hearing on applicant's petition permanent authority. Each seven applications involved here requested operating authority to sell commerce emergency grounds, as provided by § 7(c) and (e) Natural Gas Act.1 In each Commission conditioned grant upon, inter alia, producer's maintaining initial price, without increase, during period authorization. On appeal, Court Appeals set aside condition, holding it was beyond power conflicted with right producer initiate higher contract rate under 4 Act. 306 F.2d 334. We granted certiorari because importance question enforcement 375 810, 70, 47. conclude such authorizations 7 therefore reverse judgments. I. 2 While involves different authorizations, essential facts each, save dates fields, are same. Since parties have treated Hassie Hunt Trust typical, we do likewise. 3 Hunts producers Alta Loma area Galveston County Texas Railroad District 3. July 1960, issued sales from other areas Peoples Gulf Coast Pipeline Co., 24 F.P.C. 1. authorization upon filing amended providing 20¢ per Mcf., escalation 3¢ after 10 years. original had allowed four 2¢ escalations at four-year intervals. order found defective, however, Public Service New York, which sought lower been refused intervention before Commission. See Comm'n v. Comm'n, 111 U.S.App.D.C. 153, 295 140, cert. denied, sub. nom. Shell Oil Co. 368 948, 82 388, 343. Thereafter vacated issuance ordered new price. 26 689. meantime, issuance, but prior vacating, 1960 certificate, General Policy 61—1, 18 CFR 2.56, 818, fixed guideline prices 18¢ below certificate. 5 Thereafter, February 27, 1961, applied public convenience necessity allowing well same Company America, successor Coast. It also begin service immediately provisions Commission's Regulations 157.28. alleged result 'necessity paying shutin royalties incurrence drainage through others pipeline companies than Natural.' covered 20-year contract, dated December 15, identical those earlier i.e., Mcf. April 7, subject three conditions: (1) total exceed thus be keeping 3, (2) within 20 days supplements contracts filed consistent (3) accepted writing days. Deliveries were commenced 19 these conditions met. May conditional acceptance reserving seek removal imposed tendering 30 thereafter. rejected subsequently, make clear position, specifically there no change therein proposed thereafter review followed. 6 sustained held so preclude collection increased rates pursuant II. Once again confronted solely proper interpretation This time must determine interplay §§ 7. These sections avenues may, or otherwise, initially propose dedication his supply movement (§ 7) and, once dedicated changes existing 4). will proceed separate analyses two sections. 8 Section came into Act 1942 provides method may commerce. prohibits engaging transportation 'unless force respect natural-gas company acts operations.' secure certificates, due course applicants afforded hearing. Sections command if finds 'required present future necessity' meets certain tests reliability, ability willingness perform. issuing has 'the attach exercise rights thereunder reasonable terms require.' 7(e). 9 Hearings 7(e) certification consuming. Congress, realizing this, cases emergency, assure maintenance adequate serve particular customers, notice hearing, determination regulation exempt requirements section emporary operations required interest.' Pursuant adopted sets out standards requires file 'a statement intention invoke section.' 157.28(c). grants where deems necessary, Under regulation, continues until final action 'without prejudice attached certificate.' noted, does stipulate find just simply necessity. Nor suspend authorized certificates section. correct improper only Act, 52 Stat. 823, 15 U.S.C. 717 d, likewise suspension provision. light inability attaches necessary afford consumers 'complete, effective bond protection excessive charges' framed Atlantic Refining 360 378, 79 1246, 1253, 1312 (1959). 'The heart Act,' said there, 'requiring any 'proposed service, sale, operation, construction, extension, acquisition * necessity,' all charges 'made, demanded, received' 'just reasonable,' 4, 717c.' case, concluded look even more carefully interpose precedent would, view, fully protect charges. included 1938. 822, 717c. part 'no made naturalgas except thirty days' public.' 4(d). Whenever filed, notice, hold hearings lawful five months. 4(e). If proceeding months, becomes collectible, subsequent refund extent reasonable. As United Pipe Line Mobile Corp., 350 332, 341, 76 373, 379, 100 L.Ed. 373 (1956), 'is first instance they determined unlawful, remedy them.' And pointed 4(e) add basic power, newly changed further powers preserve status quo suspending operation limited period, retroactive, means procedure, date became effective.' Ibid. come play 12 instant nterstate yet issued. Temporary Thus, respondents' position correct, then nullified independent respondents 4. believe Congress intended incongruous result. III. 13 conflict directives Indeed, supplement one another thereby work together efficient conjunction carry purposes When knocks door permission enter he submit His move wishes avoid delay incident apply authorization, ex parte application. view irreparable injury affected parties. imposed, pendency nature proceeding, appears fair concerned temporarily certified continued unchanged 14 procedures point unconditional become applicable. permanently free pursue rate-filing procedure previously discussed use supra. There indicated might avail itself prevent triggering general rises. language unmistakably claim vitality being impaired repeat reaffirm it: 16 'This encroachment rate-making privileges supra, merely duty interest determining necessity, Act's standard applications. nor overturn agreed Rather, consuming protected while justness reasonableness situations act line awaiting adjudication rate.' 391—392, 1255, 1312. 17 answer say public. experience since our indicates rises often results out-of-line pricing gas. effects irreversible splash over intrastate sales, generating reciprocal pressures directly affect jurisdictional rates. Tennessee Transmission 371 145, 154, 155, 83 211, 216, 199 (1962), possibility sufficient protection: 'True, exac ion would refund, shown somewhat illusory *. is, therefore, backdrop practical consequences (resulting) Sunray Mid-Continent Comm., 364 137, 147, (80 1392, 1398, 1623) (1960), exercising discretion interim orders *.' IV. Our buttressed legislative history. They added 1942, years passage. Prior their adoption regulatory tools possessed 5, already moving designed control destined movement.2 purpose amendments give opportunity scrutinize financial set-up, adequacy reserves, feasibility services, characteristics structure vital matters readily modified demand. *' House Committee Interstate Foreign Commerce, H.R.Rep.No.1290, 77th Cong., 1st Sess., 2—3, U.S.Code Congressional p. 188. Its counterpart Senate reported: 'Provisions empower uneconomic extensions waste, regulate extension market served company.' Thus possibilities uncontrolled multiple tremendous. bill glaring inadequacy act. authorize examine costs, finances, feasibility, services. could studied.' S.Rep. 2d 2. 21 Clearly, given lay down entry Moreover, long recognized obligation modification many tariff certificate.3 22 existence broad discretionary us t pricing. now, certification. docket transposes, matters, ones. arises delays spoke 'nigh interminable' proceedings 389, operated against consumer. Here operates producer. making efforts regard, establishment guidelines administrative devices. 43 F.P.C.Ann.Rep. 13, 119—120 (1963). However, call attention dangers inherent accumulation large backlog accompanying reluctance markets Procedures worked out, up congestion, also, maintain reasonably current inordinate delay. connection techniques National Labor Relations Board studied exemption practices, see Guss Utah Board, 353 1, 3—4, 77 598, 599, 601 (1957), helpfu lin solution problems. 23 Reversed. HARLAN, whom STEWART joins, dissenting. 25 reached thought desirable, I justification either decisions matter Congress. affirm judgments substantially reasons Judge Brown convincing Appeals. 7(c), 824, amended, 56 83, 717f(c), provides: '(c) No person completion construction engage gas, jurisdiction undertake facilities therefor, acquire operate thereof, unless operations: Provided, That predecessor bona fide engaged (February 1942), route routes time, requiring proof proceedings, ap lication ninety 1942). Pending application, continuance lawful. 'In thereon interested persons judgment rules regulations prescribed Commission; decided accordance subsection denied accordingly: 7(e), 84, 717f(e), '(e) Except governed provisos contained (c) section, qualified whole able willing properly perform conform requirements, rules, thereunder, acquisition, necessity; otherwise denied. did reference competitive unserviced markets. See, e.g., Florida Economic Advisory Council 102 152, 251 643, 356 959, 78 996, 1066; Northern 164, 174—175, 180, aff'd sub Minneapolis 108 36, 278 870, 891, 81 220, 186 (certificate clauses permitting cancellation depending relationship fuels purchase project depended); Transwestern 391, 394—395, rehearing, 542 (minimum modified); Panhandle Eastern 185 (conditions inclusion interruptible schedules tariffs); Trans-Continental 24, 38—40 (commencement satisfactory dis-approval service); Alabama-Tennessee 257 Commission).

Category: 7