Nicor Exploration Co. v. Federal Energy Regulatory Commission

W. EUGENE DAVIS, Circuit Judge:

NICOR Exploration Company petitions this court to review a Federal Energy Regulatory Commission order granting Robert W. Scarth authority to collect incentive-based rates for natural gas pursuant to § 108 of the Natural Gas Policy Act (“NGPA”), 15 U.S.C. §§ 3301 et seq. The Commission concluded that the “area rate clauses” contained in gas supply contracts signed by NICOR and Scarth’s predecessors authorize Scarth to collect § 108 rates. The central issue raised by NICOR is whether the Commission’s interpretation of the contracts conflicts with Fifth Circuit…