In the case of Phillips Petroleum Co. v. Wisconsin et al., 1953, the U.S Supreme Court ruled that independent producers and gatherers of natural gas were subject to regulation by the Federal Power Commission (FPC) under the Natural Gas Act of 1938. The court held that Congress intended for comprehensive regulation over all aspects of natural gas transportation and sale in interstate commerce, including production and gathering activities typically performed by independent companies like Phillips Petroleum Company. This decision was significant as it expanded federal regulatory authority over a broader range of entities involved in natural gas industry operations than previously recognized.

In the dissenting opinion for Phillips Petroleum Co. v. Wisconsin, Justice Robert H. Jackson argued that the majority's decision to regulate independent producers of natural gas under the Natural Gas Act was a misinterpretation of Congressional intent and an overreach by federal agencies into state jurisdictional matters. He contended that Congress intended for regulation only in instances where states were unable or unwilling to do so themselves, not as a blanket rule applicable to all interstate commerce related to natural gas production and sale regardless of existing effective state regulations. Furthermore, he expressed concern about potential negative impacts on small businesses due to increased regulatory burdens imposed by this ruling.