Oneok v. Learjet
Issues
Does the Natural Gas Act, which regulates wholesale prices of natural gas, preempt state antitrust liability when accusations concern not wholesale, but retail prices?
The Supreme Court will decide whether the Natural Gas Act (“NGA”) preempts state laws that regulate the retail of natural gas. Oneok and other sellers of natural gas argue that the NGA preempts the claims that these sellers of natural gas violated antitrust laws by illegally manipulating the retail price of natural gas and engaging in wash sales. Learjet, however, contends that while wholesale rates are regulated by the NGA, the NGA does not preempt state law that regulates retail rates. The Supreme Court’s resolution of this case could impact federalism concerns as well as the future of the natural gas market.
Questions as Framed for the Court by the Parties
Does the Natural Gas Act preempt state-law claims challenging industry practices that directly affect the wholesale natural gas market when those claims are asserted by litigants who purchased gas in retail transactions?
Starting in 2005, Respondents Learjet, Inc. and other retail gas purchasers (collectively, “Learjet”), filed claims in both federal and state court alleging that Petitioners Oneok, Inc. and other natural gas traders (collectively, “Oneok”), skewed the market for natural gas and inflated gas prices by “engaging in wash