In the case of Transcontinental Gas Pipe Line Corp. v. State Oil and Gas Board of Mississippi et al., 1985, the U.S Supreme Court had to decide whether a state could regulate natural gas prices for interstate pipelines that purchased gas from in-state producers. The court ruled in favor of Transcontinental, stating that federal law preempts state regulation in this area due to the Federal Energy Regulatory Commission's (FERC) authority over such matters under the Natural Gas Act. The decision was based on Congress' intent to establish a comprehensive and uniform framework for regulating sales of natural gas affecting interstate commerce, which would be undermined by individual states imposing their own regulations on pricing or other aspects related to these transactions.

In the dissenting opinion for Transcontinental Gas Pipe Line Corp. v. State Oil and Gas Board of Mississippi et al., Justice White disagreed with the majority's interpretation of federal law as preempting state regulation in this case, arguing that it was not Congress' intent to prevent states from regulating natural gas prices at the wellhead when they enacted The Natural Gas Act (NGA). He pointed out that while NGA does give Federal Energy Regulatory Commission authority over interstate transportation rates, it doesn't explicitly prohibit states from setting their own regulations regarding production or gathering processes within their borders. Furthermore, he argued that there is no evidence suggesting such state regulations would interfere with federal regulatory goals or create undue burdens on interstate commerce. Therefore, according to Justice White’s view, Mississippi should be allowed to enforce its laws requiring pipeline companies like Transcontinental to pay producers based on monthly average market price rather than a lower contract rate.