Pennsylvania v. West Virginia

1923-06-11

Headline: Block West Virginia law that forces in‑state priority for natural gas, protecting Pennsylvania and Ohio’s interstate supplies and preventing large volumes from being diverted to local consumers.

Holding: The Court held that West Virginia’s 1919 statute requiring pipeline companies to prefer in‑state consumers is unconstitutional because it directly interferes with interstate commerce and enjoined its enforcement.

Real World Impact:

Prevents West Virginia from prioritizing in‑state customers and cutting off interstate gas flows.
Keeps gas supplies for hospitals, schools, and millions of household users in Pennsylvania and Ohio.
Invalidates state law forcing local preference over interstate commercial agreements.

Topics: natural gas, energy supply, state laws and out-of-state trade, pipeline transmission

Summary

Background

Pennsylvania and Ohio sued to stop a West Virginia law passed in early 1919 that requires pipeline companies to use gas produced in West Virginia first for consumers inside that State. The States say the law would cut off or greatly reduce the natural gas sent by pipelines into Pennsylvania and Ohio. The record shows West Virginia produced about 265 billion cubic feet of gas in 1918, with pipeline companies carrying about 157 billion cubic feet out of the State; hundreds of thousands of households and millions of people in Pennsylvania and Ohio depend on that supply. The law went into effect May 11, 1919, and temporary injunctions were issued while the suits were pending.

Reasoning

The Court addressed whether West Virginia can force local priority when doing so would withdraw gas from an established interstate flow. Relying on the commerce power in the Constitution, the majority concluded the statute directly and necessarily interferes with interstate commerce. The Court found the statute’s plain terms and enforcement mechanisms would compel pipelines to divert large and increasing volumes to West Virginia consumers, reducing supplies sent to other States. For those reasons the Court held the law unconstitutional and entered decrees for the complaining States enjoining enforcement.

Real world impact

The ruling prevents the immediate enforcement of West Virginia’s priority law and preserves existing interstate gas deliveries to Pennsylvania and Ohio. That protects public institutions, households, and industries that rely on the West Virginia supply and avoids the large public and private conversion costs the States described. The decision leaves regulation of interstate gas distribution to the national commerce framework rather than to an individual producing State.

Dissents or concurrances

Three Justices dissented. Justice Holmes argued States may regulate products before they begin interstate commerce and favored dismissal. Justices McReynolds and Brandeis thought the suits premature or that necessary parties and complex interstate allocation questions made dismissal appropriate.