United Gas Pipe Line Company v. Federal Power Commission

JOHN R. BROWN, Circuit Judge:

The question here is whether on expiration of the underlying gas sales contract with the seller still committed under the Natural Gas Act, the pipeline purchaser may be compelled to take deliveries at unilaterally increased prices until such time as the FPC approves abandonments. The FPC gave an affirmative answer. We agree and enforce.

Although decision is far from easy, the facts out of which the problem emerges are simple, neither complex nor conflicting.

In January 1953 Producer 1 and Pipeline 2 contracted for the sale and purchase of gas from Producer’s Johnson…