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Tesoro Alaska Co. v. Federal Energy Regulatory Comm'n

ELR Citation: 45 ELR 20039
Nos. 13-1248, (D.C. Cir., 02/20/2015)

The D.C. Circuit upheld FERC's approval of a cost-pooling agreement among Trans Alaska Pipeline System oil carriers that allocates most fixed costs on the basis of each carrier's share of combined interstate and intrastate utilization of the 800-mile pipeline. Two carriers that only ship oil within Alaska challenged FERC's approval of the agreement, arguing that the Interstate Commerce Act only allows FERC to regulate interstate commerce, not intrastate commerce. But the Interstate Commerce Act permits the incidental regulation of intrastate commerce pursuant to approval of a pooling agreement under §5(1). Here, any regulation of intrastate commerce was incidental to the pooling agreement that FERC had found just and reasonable for interstate commerce. Nor did FERC act arbitrarily or capriciously in approving the agreement, or make findings unsupported by the evidence, in violation of the APA. The court, therefore, denied the petition for review.