Administrative Boundary, Literally.

The Fifth Circuit set a boundary – literally – for part of the administrative state in BP v. FERC, which reviewed a FERC fine of BP for alleged gas-price manipulation associated with Hurricane Ike. The Court held:

Contrary to FERC’s position, we hold that the Commission has jurisdiction only over transactions in interstate natural gas directly regulated by the Natural Gas Act (NGA). Specifically, we reject FERC’s broader theory that its authority to address market manipulation extends to any natural gas transaction which affects the price of a transaction under the NGA. Otherwise, however, we uphold the Commission’s order. Nevertheless, because FERC predicated its penalty assessment on its erroneous position that it had jurisdiction over all (and not just some) of BP’s transactions, we must remand for reassessment of the penalty in the light of our jurisdictional holding.

No. 21-60083-CV (Oct. 20, 2022, unpublished) (emphasis added).