Justia Energy, Oil & Gas Law Opinion Summaries
Driftless Area Land Conservancy v. Valcq
In 2019 the Public Service Commission of Wisconsin issued a permit authorizing two transmission companies and an electric cooperative to build and operate a $500 million, 100-mile power line. Environmental groups filed lawsuits in both federal and state courts, alleging that two of the three commissioners had disqualifying conflicts of interest and should have recused themselves.The Seventh Circuit affirmed the denial of the commissioners’ motion to dismiss based on sovereign immunity. The commissioners were sued in their official capacities, so sovereign immunity blocks this suit in its entirety unless it falls within the Ex parte Young exception, which authorizes a federal suit against state officials for the purpose of obtaining prospective relief against an ongoing violation of federal law. The environmental groups seek an order enjoining the permit’s enforcement, prospective relief; they contend that the violation is ongoing as long as the permit remains in force and effect and the commissioners have the power to enforce, modify, or rescind it. Ex parte Young applies.The court, sua sponte, remanded with instructions to stay the case pending resolution of the state proceedings. Both cases raise materially identical due-process recusal claims. The case implicates serious state interests regarding the operation of Wisconsin administrative law and judicial review. Litigating the same questions in both court systems is duplicative and wasteful; comity and the sound administration of judicial resources warrant abstention. View "Driftless Area Land Conservancy v. Valcq" on Justia Law
Pennington v. BHP Billiton Petroleum, LLC
The Supreme Court answered a certified question from federal court about whether Arkansas law prevented Plaintiffs from pursuing their breach of contract claim when the first breach occurred outside of the state of limitations period, holding that a separate statute of limitations period began as each monthly oil-and-gas royalty payment became due.The contract in this case required monthly oil-and-gas payments. Plaintiffs brought this action alleging that Defendants had been underpaying those royalties for several years. In response, Defendant raised the affirmative defense of statute of limitations. The federal district court certified a question of law to the Supreme Court. The Supreme Court answered that, under Arkansas law, the existence of royalties outside the limitations period did not bar recovery for monthly underpayments within the limitations period. View "Pennington v. BHP Billiton Petroleum, LLC" on Justia Law
Chevron U.S.A., Inc. v. County of Monterey
Ordinances banning “land uses in support of” new oil and gas wells and “land uses in support of” wastewater injection in unincorporated areas of Monterey County were enacted as part of Measure Z, an initiative sponsored by PMC and passed by Monterey County voters.The trial court upheld, in part, a challenge to Measure Z by oil companies and other mineral rights holders. The court of appeal affirmed. Components of Measure Z are preempted by state laws. Public Resources Code section 3106 explicitly provides that the State of California’s oil and gas supervisor has the authority to decide whether to permit an oil and gas drilling operation to drill a new well or to utilize wastewater injection in its operations. Those operational aspects of oil drilling operations are committed by section 3106 to the state’s discretion and local regulation of these aspects would conflict with section 3106. View "Chevron U.S.A., Inc. v. County of Monterey" on Justia Law
Matthews v. Centrus Energy Corp.
The 1954 Atomic Energy Act allowed private construction, ownership, and operation of commercial nuclear power reactors for energy production. The 1957 Price-Anderson Act created a system of private insurance, government indemnification, and limited liability for federal licensees, 42 U.S.C. 2012(i). In 1988, in response to the Three Mile Island accident, federal district courts were given original and removal jurisdiction over both “extraordinary nuclear occurrences” and any public liability action arising out of or resulting from a nuclear incident; any suit asserting public liability was deemed to arise under 42 U.S.C. 2210, with the substantive rules for decision derived from state law, unless inconsistent with section 2210.The Portsmouth Gaseous Diffusion Plant enriched uranium for the nuclear weapons program and later to fuel commercial nuclear reactors. Plaintiffs lived near the plant, and claim that the plant was portrayed as safe while it discharged radioactive material that caused (and continues to cause) them harm.Plaintiffs, seeking to represent a class, filed suit in state court asserting claims under Ohio law. The Sixth Circuit affirmed the removal of the case on the grounds that the complaint, although it did not assert a federal claim, nonetheless raised a federal question under the Price-Anderson Act, and affirmed the subsequent dismissal. The Act preempted plaintiffs’ state law claims and the plaintiffs did not assert a claim under the Act but asserted that their “claims do not fall within the scope of the Price-Anderson Act.” View "Matthews v. Centrus Energy Corp." on Justia Law
Continental Resources v. Armstrong, et al.
Phillip Armstrong appealed a judgment adjudicating ownership of interests in an oil and gas lease and the parties’ claims to revenue proceeds from production on those interests. Continental Resources operated wells located on lands covered by the lease. When Continental learned of competing claims to the leasehold interests in question, it began holding production royalties in suspense and recouping amounts it had paid on the wells. Continental sued Armstrong alleging it had overpaid him. Continental later amended its complaint to add the other defendants and request interpleader relief. Continental requested the district court determine ownership of the interests and the amount of revenue proceeds to which each defendant was entitled on production from wells the parties referred to as the Hartman Wells. The defendants filed various crossclaims and counterclaims. The North Dakota Supreme Court affirmed the judgment to the extent it determined ownership of the disputed interests and dismissed Armstrong’s claims against Continental Resources. The Court reversed and vacated the judgment to the extent it ordered Armstrong to pay Citation 2002 Investment Limited Partnership restitution for unjust enrichment. View "Continental Resources v. Armstrong, et al." on Justia Law
In re Application of Duke Energy Ohio, Inc.
The Supreme Court affirmed the order of the Ohio Power Siting Board granting Duke Energy Ohio, Inc. a certificate of environmental compatibility and public need to construct, operate, and maintain a natural-gas pipeline, holding that the Board's decision was not manifestly against the weight of the evidence and was not so clearly unsupported by the record as to show a mistake or willful disregard of duty.Specifically, the Supreme Court held (1) assuming without deciding that the Board misapplied its filing requirements, the error was harmless; (2) the Board did not err in determining that Duke's proposal met the conditions of Ohio Rev. Code 4906.10(A)(1); (3) the Board properly accounted for the interest of safety in evaluating Duke's proposal; (4) the Board did not err by not requiring Duke to evaluate the pipeline's impact against the City of Blue Ash's most recent comprehensive plan; (5) the Board did not err in evaluating the pipeline's estimated tax benefits; and (6) the Board did not deprive Blue Ash of due process of law. View "In re Application of Duke Energy Ohio, Inc." on Justia Law
In re Application of Suburban Natural Gas Co.
The Supreme Court reversed the decision of the Public Utilities Commission of Ohio (PUCO) allowing a gas company to charge its customers higher rates, holding that the PUCO erred by approving the rate increase.At issue was whether Suburban Natural Gas Company's customers must pay for a 4.9-mile extension of the company's pipeline. The PUCO determined that the pipeline extension met the "used-and-useful" test as of a specified date and approved the rate increase. See Ohio Rev. Code 4909.15(A)(1). The Supreme Court reversed, holding (1) the PUCO looked beyond whether the entire 4.9-mile extension was used and useful on the applicable date and considered whether it was a prudent investment because it might prove useful in the future; and (2) therefore, the PUCO erred in evaluating the rate increase. View "In re Application of Suburban Natural Gas Co." on Justia Law
In re Petition of Portland Street Solar LLC
Portland Street Solar LLC appealed a Public Utility Commission order denying Portland Street’s petition for a certificate of public good (CPG) to install and operate a 500-kW solar group net-metering system adjacent to a previously permitted solar array owned by Golden Solar, LLC. Interpreting the definition of “plant” set forth in 30 V.S.A. 8002(18), the Commission determined that the proposed Portland Street project would be part of a single plant along with the already-approved adjacent Golden Solar project and thus would exceed the 500-kw energy-generating-capacity limit applicable in the net-metering program. On appeal, Portland Street argued the Commission’s decision was inconsistent with the Vermont Supreme Court’s controlling precedent, as well as prior Commission decisions involving similar cases, and that the Commission exceeded its statutory authority by expansively construing the component parts of section 8002(18) that defined the characteristics of a single plant. Applying the appropriate deferential standard of review, the Supreme Court concluded the Commission’s self-described expanded and refined interpretation of what constituted a single plant under section 8002(18) was not arbitrary, unreasonable, or discriminatory and did not amount to compelling error that would require the Court to intervene in matters the Legislature has delegated to the Commission’s expertise. Accordingly, the Court affirmed the Commission’s decision denying Portland Street’s petition for a CPG to install and operate its proposed facility under the net-metering program. View "In re Petition of Portland Street Solar LLC" on Justia Law
French v. Alaska Oil & Gas Conservation Commission
The Alaska Oil & Gas Conservation Commission denied an individual’s request for a hearing regarding a reported natural gas leak and whether the leak constituted “waste” under Alaska law. The agency concluded it had no jurisdiction over the matter because it previously had investigated and had concluded the leak did not constitute “waste.” The individual appealed to the superior court, which affirmed the agency’s decision. The Alaska Supreme Court reversed, finding the individual's request for a hearing was improperly denied: "The Commission has jurisdiction over waste determinations, and substantial evidence does not support its assertion that it investigated and concluded this leak was not waste." View "French v. Alaska Oil & Gas Conservation Commission" on Justia Law
In re Resource Development Council for Alaska, Inc., et al.
The issue this case presented for the Alaska Supreme Court's review centered on a challenge to the lieutenant governor’s decision that the sponsors of an initiative, “An Act changing the oil and gas production tax for certain fields, units, and nonunitized reservoirs on the North Slope,” had collected enough signatures to allow the initiative to appear on the ballot in the 2020 general election. Entities opposed to the initiative argued that signatures should not have been counted because the signature gatherers (the circulators) falsely certified that their compensation complied with Alaska election law. The statute governing circulator compensation allows them to be paid no more than “$1 a signature.” The superior court decided that this statute was unconstitutional because it imposed an unreasonable burden on core political speech — “interactive communication concerning political change.” It therefore concluded that the lieutenant governor properly counted the challenged signatures and properly certified the initiative petition for the ballot. The entities opposed to the initiative filed this appeal. The Supreme Court heard oral argument in August 2020, and on August 31 issued a summary order affirming the superior court’s judgment. This opinion explained the Court's decision. View "In re Resource Development Council for Alaska, Inc., et al." on Justia Law