Texas Pipeline Assoc. v. Federal Energy Regulatory Comm'n, No. 10-60066 (5th Cir. 2011)Annotate this Case
Petitioners petitioned for review of Order 720, which adopted the Posting Rule, and 720-A of the Federal Energy Regulation Commission (FERC). Petitioners contended that the Posting Rule exceeded the authority granted to FERC by the Natural Gas Act of 1938 (NGA), 15 U.S.C. 717, in violation of section 10(e) of the Administrative Procedures Act (APA), 5 U.S.C. 706(2)(C), which prohibited any agency action "in excess of statutory jurisdiction, authority, or limitations." The court held that all attempts by FERC to show that section 1(b) did not limit the scope of section 23 of the NGA were unavailing and the NGA unambiguously precluded FERC from issuing the Posting Rule so as to require wholly intrastate pipelines to disclose and disseminate capacity and scheduling information. Therefore, under Chevron step one analysis, FERC had no statutory authority to promulgate Order 720 and 720-A and thus, violated section 10(e) of the APA. Accordingly, the petitions for review were granted and the orders vacated.