Mobil Alaska Pipeline Company v. United States

Background

A group of pipeline companies that operate the Trans-Alaska Pipeline sought to collect rates that the Interstate Commerce Commission had suspended. On October 20, 1977, the Court stayed the ICC suspension, allowing those companies to resume charging the suspended tariffs. The stay covers major firms named in the record and affects large sums—about $1.5 million per day and more than $100 million by January 28, 1978.

Reasoning

The central practical question was whether the Court should continue a stay that lets the pipelines collect suspended rates while the petitions for review proceed. The Court’s order allows the companies to collect the rates during the stay, permits the Federal Energy Regulatory Commission to carry out its investigation and enter consistent orders, requires the companies to keep detailed accounts of amounts collected, and mandates refunds with interest calculated under Section 15(8)(e) of the Interstate Commerce Act if collection is later found unlawful. Justices Stewart and Powell did not participate in this decision.

Real world impact

Pipelines can immediately receive large revenues while the legal dispute continues. If the Court later upholds the suspension or denies review, companies must refund improper collections with interest at the statutorily prescribed rate. The record shows concerns that the prescribed interest rate may be lower than actual borrowing costs faced by royalty holders, so affected parties may not be fully protected. This order is an interim procedural step, not a final ruling on the lawfulness of the rates.

Dissents or concurrances

Justice Brennan, joined by Justice Marshall, and Justice Blackmun dissented. They argued the stay was improvident, worried about consumer and royalty-holder harm, and urged higher interest to better protect affected parties.