The U.S. Supreme Court case Northern Natural Gas Co. v. State Corporation Commission of Kansas in 1962 revolved around the issue of whether a state could regulate natural gas production on grounds that it was preventing waste and protecting property rights, even though the gas would be sold out-of-state. The court ruled against the State Corporation Commission of Kansas, stating that under the Natural Gas Act (NGA), only federal authorities had jurisdiction over sales for resale in interstate commerce to prevent conflicting state regulations from interfering with national energy policy objectives set by Congress through NGA. This decision upheld an earlier ruling by a three-judge Federal District Court which held that orders issued by the commission were void because they conflicted with federal law governing interstate sale of natural gas.

The dissenting opinion in the Northern Natural Gas Co. v. State Corporation Commission of Kansas case argued that the majority's decision was a significant overreach of federal power, infringing upon states' rights to regulate their own natural resources. The dissenters believed that there was no conflict between state and federal interests in this case, as both aimed at preventing waste and ensuring fair distribution of gas reserves. They pointed out that the Federal Power Commission had never attempted to assert jurisdiction over these wells before this litigation began, suggesting it did not see any inherent conflict with state regulation until now. Furthermore, they noted that Congress had explicitly left regulatory gaps for states to fill when it passed relevant legislation on natural gas policy - implying an intent for shared oversight rather than exclusive federal control.