Authority of the Department of Energy to Regulate Anticompetitive Aspects of Petroleum Pipeline Operations

摘要

The role of pipelines in the petroleum industry and alleged anticompetitive practices and anticompetitive consequences are discussed. Consideration is given to economies of scale leading to natural monopoly conditions, and data are presented on the degree of vertical intergration and concentration in the petroleum industry and in the pipeline segment. The authority of the ICC (and DOE as successor) under the Interstate Commerce Act is examined. The scope of ICC authority is delineated with respect to the common carrier status of petroleum pipelines and their involvement in interstate commerce. The authority of the ICC (and DOE as successor) to enforce the Clayton Act, and in particular as it applies to mergers and joint ventures is discussed. The impact of the Department of Energy Organization Act on the allocation and performance of the previously described functions is considered. Particular attention is directed to the authority of the Federal Energy Regulatory Commission and its relation to the authority of the Secretary (or his designee). The possible responses of DOE to alleged anticompetitive practices and anticompetitive consequences of petroleum pipeline operations are considered and the results of earlier discussions are summarized with respect to rates and charges; operating practices; construction practices; and ownership interests. (ERA citation 04:029177)