Some Consequences of Fears by Independent Producers of Gas of Federal Regulation

Abstract

This article deals with some of problems of independent producers of natural gas' that are created by fear that sales of their gas to an interstate transmission line (long line) may subject them to regulation by Federal Power Commission under Natural Gas Act.2 If this fear is not removed, supply of natural gas available to long lines may be insufficient before many years to meet needs of present consumers. Moreover, prices for gas to consumers may go considerably above present levels. It follows that ultimate consumers of natural especially householders, should be keenly interested in removing causes of those fears. In other articles in this special issue of Law and Contemporary Problems will be found comprehensive discussion of Natural Gas Act, including jurisdictional provisions and their interpretation by Federal Power Commission and by courts. Therefore, this article does not purport to establish scope or meaning of jurisdictional provisions, especially those quoted below in footnote 2 that exempt from jurisdiction the production or gathering of natural gas, and also exempt certain sales and transportation. Neither does this article purport to establish activities that are or ought to be included as part of production, nor what consti-