ELR Citation: ELR 20776
No(s). 72-1636 (D.C. Cir. Jul 30, 1973)

NEPA requires that the Federal Power Commission prepare either an environmental impact statement or a statement of reasons for considering an impact statement unnecessary when it denies an application for a certificate of public convenience and necessity for the interstate transport of natural gas for direct use. The court rules that since the gas was purchased in an intrastate transaction not subject to FPC jurisdiction at rates higher than those permitted by the Commission for interstate sales, the Commission was correct in deciding that transport of the gas could affect adversely the supply of gas in interstate markets. The Commission's brief reference to the environmental issue, in which it suggested that denial of the application would be detrimental to the environment, was inadequate to meet the requirements of NEPA.The case is accordingly remanded to the FPC for further proceedings.

Counsel for Petitioner
John T. Miller, Jr.
1001 Connecticut Avenue, NW
Washington, DC 20036

Counsel for Respondents
George W. McHenry Acting Solicitor
Leo E. Forquer General Counsel
William M. Sawyer
Federal Power Commission
Washington, DC 20426