By the Natural Gas Act of 1938, the federal government imposed price controls on natural gas in interstate commerce. The Federal Power Commission was mandated to set interstate gas prices at "just and reasonable" rates. The FPC at first only regulated the price at which pipelines sold gas to utilities and industry, but later put limits on the wellhead price of gas sold to an interstate pipeline. Gas producers challenged the controls, but lost in the Supreme Court in Phillips Petroleum Co. v. Wisconsin (1954).