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ARTICLE · 22 APRIL 2015

Supreme Court Decision Alert - April 21, 2015

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Natural Gas Act—Federal Preemption Of State-Law Antitrust Claims

United StatesLitigation, Mediation & Arbitration

Yesterday, the Supreme Court issued one decision, described below, of interest to the business community.

Natural Gas Act—Federal Preemption Of State-Law Antitrust Claims

OneOK, Inc. v. Learjet, Inc., No. 13–271

The Natural Gas Act, 15 U.S.C. § 717 et seq., grants the Federal Energy Regulatory Commission exclusive authority to regulate certain segments of the natural-gas market. The statute draws a line between different kinds of natural-gas sales: FERC has exclusive authority to regulate wholesale sales of natural gas, but retail purchases of natural gas fall outside of FERC's jurisdiction. Today, in OneOK, Inc. v. Learjet, Inc., No. 13-271, the Supreme Court held that the Natural Gas Act does not preempt state-law antitrust claims asserted by litigants that purchased natural gas in retail transactions even when those claims challenge industry practices that also affect the wholesale natural-gas market.

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