Court Opinion

ID: 9456613
Source: CourtListenerOpinion
Date Created: 2023-08-04 19:58:00.079029+00
Date Added: 2024-06-11T17:35:02.734015
License: Public Domain

MEHAFFY, Circuit Judge
(dissenting) :
I respectfully dissent and would affirm primarily upon the findings of fact and conclusions of the district court in its opinion reported as Murphy Oil Corp. v. Hickel, 307 F.Supp. 812 (W.D.Ark. 1969).
It is undisputed that Murphy Oil Corporation is an independent, integrated company with no affiliates or subsidiaries and neither controls nor is controlled by any other independent corporation, firm, business organization or legal entity. Thus, the literal language of § 4(g) of Oil Import Regulation 1 does not apply to Murphy if the plain language of this provision is adhered to. If the regulation had been intended to apply to a situation such as Murphy’s, it would have been a simple matter for it to have been so written with the exception provided by Amendment 6 applicable to the Northern Tier refineries.
It is noted that Judge Harris’ Finding of Fact No. 16 reads as follows:
“16. That Murphy Oil Corporation’s refinery located at Superior, Wisconsin, is geographically isolated from domestic sources of crude oil supply. It is therefore dependent upon Canadian crude oil in order to provide and maintain an adequate feedstock for its Northern Tier refinery located at Superior, Wisconsin, in its efforts to compete with other Northern Tier refiners located within such restrictive geographical area.” 307 F.Supp. at 815-816.
There are only six refineries within the three states comprising the Northern Tier. To deprive Murphy of the benefit of the floor accorded the other five refineries in this area simply because of its ownership of a refinery in a state outside the Northern Tier is not a requirement of the applicable regulations. Additionally, with Murphy’s Northern Tier refinery dependent entirely on Canadian crude oil, the de-privement of this benefit discriminates against Murphy in its competition with the other Northern Tier refineries. If such discrimination does not deprive Murphy of equal protection of the law, *426at least it violates the statement of intent of the regulations to provide to the extent possible for a fair and equal distribution among persons having refining capacity in these districts (Districts 1 to 4 and District 5). See Presidential Proclamation 3279, Section 3(b) (1) and as amended.
I am aware of the deference generally accorded the interpretation of a regulation by its agency, but it appears that here the interpretation which the majority follows reads something into the regulation that could easily have been put in plain language if that had been the intention.
While courts generally have great respect for administrative interpretations of their regulations, it is well known that Judge Harris by his long experience in Congress with extensive work in this field has much expertise, and I would adopt his findings and conclusions and affirm.