K N Energy, Inc. v. Federal Energy Regulatory Commission, Western Gas Resources, Inc., Williston Basin Interstate Pipeline Company, Intervenors

Opinion for the Court filed by Circuit Judge SENTELLE.

SENTELLE, Circuit Judge:

The ongoing struggle over the resolution of take-or-pay claims in the natural gas industry requires us to revisit the Federal Energy Regulatory Commission’s (“FERC” or the “Commission”) Order No. 500. 52 Fed.Reg. 30,334 (Aug. 14, 1987). This time we must determine whether the Commission may prohibit Williston Basin Interstate Pipeline Company (“Williston Basin”) from allocating certain portions of its take- or-pay claims to its sales customers in a commodity rate surcharge, thus requiring the pipeline to spread its…