Case Explained: In re WINTER STORM URI NATURAL GAS LITIGATION —————————— RUSS MEHL; EDMUND GROSS

Court: United States Court of Appeals for the Tenth Circuit

Filed: 2026-07-06

Docket: 6:24-CV-01073-DDC-ADM)

The Tenth Circuit affirmed the district court’s dismissal of the plaintiffs’ class-action claims, holding that the Natural Gas Act (NGA) field-preempts state-law claims brought under the Kansas Consumer Protection Act (KCPA) against natural gas wholesalers. The court determined that the NGA occupies the field of matters relating to wholesale sales and transportation of natural gas in interstate commerce, granting the Federal Energy Regulatory Commission (FERC) exclusive jurisdiction over these transactions. Applying the “direct-target” test established by the Supreme Court in *Oneok, Inc. v. Learjet, Inc.*, the court concluded that the plaintiffs’ lawsuit directly targets interstate wholesale transactions between the defendants and local distributors, rather than retail sales or non-jurisdictional marketplace conditions. The court distinguished this case from *Oneok*, noting that while *Oneok* involved state laws applied to retail rates affected by background market conditions, the claims here specifically challenge the reasonableness of wholesale prices set within FERC’s exclusive regulatory authority. Consequently, the plaintiffs’ allegations that wholesalers profiteered during Winter Storm Uri are barred because they seek to regulate conduct exclusively reserved for federal oversight. The practical consequence is that the plaintiffs’ state-law claims against the wholesalers are invalid and cannot proceed in state or federal court.

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