U.S. Supreme Court Upholds “Use-lt-or-Lose-lt” Rule
✍ Scribed by Batla, Raymond J.
- Publisher
- John Wiley and Sons
- Year
- 2007
- Weight
- 253 KB
- Volume
- 5
- Category
- Article
- ISSN
- 0743-5665
No coin nor oath required. For personal study only.
✦ Synopsis
In a unanimous decision handed down on March 6 in the Northwest Central Pipeline case, the United States Supreme Court upheld a Kansas regulation providing for cancellation of producer underages from allowables unless production occurred within a specified period. Despite the fact that the Kansas rule was admittedly designed to spur greater purchases of Kansas Hugoton gas by interstate pipelines, the Court concluded that the Kansas rule did not intrude on federal turf and was therefore not preempted by federal regulation. In so ruling, the Court distinguished its decisions in Northern Natural Gas Co. v. State Corp. Comm'sr of Kansas' and Transcontinental Pipe Line Corp. v. State Oil andGas Bd.