The Federal Energy Regulatory Commission v. Pennzoil Producing Co., et al., 1978, is a case that centered on the issue of whether or not the Federal Power Commission (FPC), now known as the Federal Energy Regulatory Commission (FERC), had jurisdiction over sales of natural gas made directly to industrial consumers by independent producers who were not engaged in interstate commerce. The FPC asserted its authority under Section 1(b) of the Natural Gas Act which gave it control over transportation and sale for resale in interstate commerce but did not explicitly mention direct sales. Pennzoil argued against this interpretation, asserting that such transactions fell outside federal purview because they didn't involve interstate transport or resale. However, the Supreme Court ruled in favor of FERC's broader interpretation, stating that Congress intended to give comprehensive authority to regulate all aspects of natural gas affecting interstate commerce when it enacted the Natural Gas Act.

In the dissenting opinion for Federal Energy Regulatory Commission v. Pennzoil Producing Co., it was argued that the majority's decision to uphold FERC's jurisdiction over intrastate natural gas producers under the Natural Gas Policy Act of 1978 (NGPA) was incorrect. The dissenters believed that Congress did not intend for FERC to have such broad regulatory power, and instead intended state authorities to regulate these producers. They pointed out that NGPA’s language does not explicitly grant this authority to FERC, and thus its interpretation by the majority is an unwarranted expansion of federal power into areas traditionally controlled by states. Furthermore, they contended that if Congress had wanted FERC to oversee intrastate production, it would have clearly stated so in NGPA itself rather than leaving it up for judicial interpretation.