Stanley Forman Reed

“ We held that the Commission in exercising its rate-making authority could include the fair value of the producing and gathering facilities in the rate base of a natural-gas company. The primary duty of the Commission is to fix just and reasonable rates for the transportation and sale of natural gas in interstate commerce for resale. For this purpose the Court permitted the Commission to examine and consider the cost of production and gathering. The use of such data for rate making is not a precedent for regulation of any part of production or marketing. ”

“ The power to do the things appropriate to carry out the provisions of the Act can hardly be taken to rescind a prohibition against certain actions.
The Federal Power Commission leans heavily upon § 7 (b) which provides that no natural-gas company may abandon any of its facilities subject to the jurisdiction of the Commission without the prior approval of the Commission. [13] The argument here is that since natural gas is the 'lifeblood' of a pipe-line system, a company by disposing of its gas reserves, unhampered by Commission control, may render itself unable to continue service ”

“ The Natural Gas Act was designed to supplement state power and to produce a harmonious and comprehensive regulation of the industry. [18] Neither state nor federal regulatory body was to encroach upon the jurisdiction of the other. [19] Congress enacted this Act after full consideration of the problems of production and distribution. It considered the state interests as well as the national interest. It had both producers and consumers in mind. ”