In the case of Commonwealth of Pennsylvania v. State of West Virginia in 1922, the Supreme Court was asked to resolve a dispute between states over natural gas distribution. The state of Pennsylvania claimed that West Virginia's restrictions on out-of-state natural gas exports violated the Commerce Clause by interfering with interstate commerce. However, West Virginia argued it had imposed these restrictions due to concerns about depleting its own supply and ensuring sufficient resources for its residents during winter months. The Supreme Court ruled in favor of Pennsylvania, stating that while states have rights over their natural resources, they cannot interfere with interstate commerce or discriminate against other states when regulating those resources. This decision established an important precedent regarding how far a state can go in controlling its own resources before infringing upon federal jurisdiction under the Commerce Clause.

In the dissenting opinion for Commonwealth of Pennsylvania v. State of West Virginia, Justice Holmes argued that the Supreme Court should not have jurisdiction over this case as it was essentially a dispute between private parties rather than states. He believed that Pennsylvania did not have a direct interest in the matter and thus lacked standing to bring suit against West Virginia. The state's claim was based on its citizens' need for natural gas supply from West Virginia, but Holmes asserted that such indirect harm does not constitute an injury to the state itself. Furthermore, he contended that even if there were interstate commerce issues involved, they should be addressed by Congress rather than judicial intervention. In his view, allowing states to sue each other over economic disputes could lead to unnecessary conflicts and disrupt harmonious relations among them.