The U.S. Supreme Court case Federal Power Commission v. Transcontinental Gas Pipe Line Corp., et al., in 1975, revolved around the issue of whether or not the Federal Power Commission (FPC) had jurisdiction over sales for resale of natural gas produced on federal offshore lands under Outer Continental Shelf Lands Act (OCSLA). The FPC claimed it did have such authority, while Transcontinental Gas Pipe Line Corporation and other pipeline companies argued that they were exempt from FPC regulation due to a provision in their contracts with producers stating that if any government agency assumed jurisdiction over their sales, then prices would increase accordingly. The Supreme Court ruled in favor of the FPC, asserting its right to regulate these transactions under Natural Gas Act provisions which extended to all natural gas transportation and sale for resale activities affecting interstate commerce regardless of where production occurred.

The dissenting opinion in the Federal Power Commission v. Transcontinental Gas Pipe Line Corp case argued that the majority's decision to allow the Federal Power Commission (FPC) to regulate prices of natural gas sold directly from producers to pipeline companies was an overreach of federal power. The dissenters believed this interpretation extended beyond what Congress intended when it passed the Natural Gas Act, which they argue was meant only for regulating interstate commerce and not intrastate activities such as production and gathering. They contended that allowing FPC jurisdiction over these sales would disrupt state regulatory schemes and potentially harm local economies dependent on oil and gas production. Furthermore, they expressed concern about potential negative impacts on small independent producers who might be unable to bear increased regulatory burdens imposed by FPC oversight.