In the United States Supreme Court case of United Gas Pipe Line Co. v. Federal Power Commission et al., 1966, the court was tasked with determining whether or not the Federal Power Commission (FPC) had jurisdiction over sales for resale of natural gas in interstate commerce by independent producers who were not engaged in any other phase of the natural gas business. The FPC asserted that it did have such authority under Section 1(b) of Natural Gas Act and issued orders to regulate these sales accordingly. However, United Gas Pipe Line Co., an independent producer, challenged this assertion arguing that their activities fell outside FPC's regulatory purview as defined by Congress. The Supreme Court ruled against United Gas Pipe Line Co., upholding FPC’s jurisdiction over all wholesale sales in interstate commerce regardless if a company is involved solely in production and gathering operations or also engages in transportation and distribution activities related to natural gas industry. This decision affirmed federal regulation on pricing practices within entire chain from wellhead to consumer delivery point ensuring fair rates for consumers while promoting competition among suppliers.

In the dissenting opinion for United Gas Pipe Line Co. v. Federal Power Commission, Justice Harlan argued that the majority's decision to uphold the Federal Power Commission's jurisdiction over sales of natural gas for resale in interstate commerce was misguided. He contended that such a broad interpretation of federal power could potentially undermine state authority and disrupt local economies by imposing uniform national standards on inherently regional industries like natural gas production and distribution. Furthermore, he expressed concern about potential negative impacts on private businesses due to increased regulatory burdens and uncertainty caused by this expansive view of federal jurisdiction under the Natural Gas Act. Ultimately, Justice Harlan believed that Congress did not intend for such an extensive reach when it enacted legislation regulating interstate commerce in energy resources.