Note:
Kathleen Cooper Lake, The Prudent Operator Standard and FERC Authority, 57 Texas L. Rev. 661 (1979).
 

Abstract:
The Federal Energy Regulatory Commission (FERC) issues certificates of pubic convenience and necessity to producers delivering natural gas to the interstate market. To “preserve the integrity of its certification process,” FERC also oversees the service obligations. Specifically under Order No. 539-B, FERC is permitted to impose the prudent operator standard on all certificated producers in developing and maintaining deliverability obligations, thus giving FERC much power of controlling production. This note argues that neither the legislative history of the Natural Gas Act nor case law supports this radical administrative alteration of state regulatory jurisdiction. Moreover, this note demonstrates that the order is inconsistent with federal energy policy.