Justia Energy, Oil & Gas Law Opinion Summaries

After settlement of a class action for royalties from gas wells, the federal district court for the Western District of Oklahoma awarded attorney fees to class counsel and an incentive award to the lead plaintiff to be paid out of the common fund shared by class members. The court rejected claims by two objectors, and they appealed. Finding the district court failed to compute attorney fees under the lodestar method, as required by Oklahoma law in this diversity case, and the incentive award was unsupported by the record, the Tenth Circuit reversed and remanded. View "Chieftain Royalty v. Enervest Energy" on Justia Law

Statoil Oil & Gas LP appealed judgments dismissing without prejudice its actions against numerous defendants, seeking a determination of the proper distribution of oil and gas revenues from Williams and McKenzie County wells on land adjacent to the Missouri River and under Lake Sakakawea. It was undisputed that the United States claimed an interest in the property and, although the United States waived sovereign immunity regarding real property title disputes, those actions against the United States had to be brought and resolved in a federal court. The parties therefore agreed that joinder of the United States was not feasible for purposes of N.D.R.Civ.P. 19(a). The provisions of N.D.R.Civ.P. 19(b) come into play:"(b) When Joinder Is Not Feasible. If a person who is required to be joined if feasible cannot be joined, the court must determine whether, in equity and good conscience, the action should proceed among the existing parties or should be dismissed. Considering N.D.R.Civ.P. 19(b)(1), the district court noted the United States would be prejudiced to some extent by its absence in the proceedings because, although it would not be bound by a state court judgment, a judgment in favor of other mineral owners would cloud its record title to the disputed property. This could force the United States to institute a proceeding to protect its interests in the property, resulting in a waste of judicial and party resources. The trial court concluded there was a risk of substantial prejudice to the United States (including both its mineral interests and its sovereignty) if this matter proceeded in its absence, and therefore the first factor favors dismissal. The North Dakota Supreme Court affirmed, concluding the district court did not abuse its discretion in dismissing the actions because Statoil failed to join the United States as an indispensable party. View "Statoil Oil & Gas, LP v. Abaco Energy, LLC" on Justia Law

The Water District appealed from the district court's judgment in a consolidated multidistrict litigation granting summary judgment to BP and Shell on the ground that the Water District's suit was barred by res judicata arising from 2002 and 2005 settlements. Claims against BP and Shell for MTBE contamination had been brought by the Orange County District Attorney (OCDA) in 1999 and were settled in 2002 and 2005 respectively. The Second Circuit vacated and remanded the Water District's claims against BP and Shell, holding that the Water District and OCDA were not in privity. View "In re Methyl Tertiary Butyl Ether (MTBA) Products Liability Litigation" on Justia Law

At issue in this appeal was the computation of economic losses arising out of the BP oil spill and based on the BP Settlement Agreement. The district court approved a policy adopted by the Claims Administrator (Policy 495) that consists of five methodologies to calculate claimant compensation: one Annual Variable Margin Methodology (AVMM) and four Industry-Specific Methodologies (ISMs). The Fifth Circuit held that the AVMM was consistent with the text of the Settlement Agreement, but that the four ISMs were not. The district court erred in approving the ISMs because they required the Claims Administrator to move, smooth, or otherwise reallocate revenue in violation of the Settlement Agreement. However, the ISMs, also required the Claims Administrator to match all unmatched profit and loss statements. Accordingly, the court affirmed as to the AVMM, reversed as to the ISMs, and remanded for further proceedings. View "In re: Deepwater Horizon" on Justia Law

Substantively, in three somewhat interconnected claims, Joe and Yvette Hardesty (collectively, Hardesty) attacked State Mining and Geology Board (Board) findings, contending the trial court misunderstood the legal force of his 19th century federal mining patents. He asserted he had a vested right to surface mine after the passage of SMARA without the need to prove he was surface mining on SMARA’s operative date of January 1, 1976. He argued the Board and trial court misapplied the law of nonconforming uses in finding Hardesty had no vested right, and separately misapplied the law in finding that his predecessors abandoned any right to mine. These contentions turned on legal disputes about the SMARA grandfather clause and the force of federal mining patents. Procedurally, Hardesty alleged the Board’s findings did not “bridge the gap” between the raw evidence and the administrative findings. Hardesty also challenged the fairness of the administrative process itself, alleging that purported ex parte communications by the Board’s executive director, Stephen Testa, tainted the proceedings. The Court of Appeal reviewed the facts, and found they undermined Hardesty’s claims: the fact that mines were worked on the property years ago does not necessarily mean any surface or other mining existed when SMARA took effect, such that any right to surface mine was grandfathered. However, the Court agreed with the trial court’s conclusions that, on this record, neither of these procedural claims proved persuasive. Accordingly, the Court affirmed the judgment denying the mandamus petition. View "Hardesty v. State Mining & Geology Board" on Justia Law

This case involved a dispute over the ownership of mineral rights appurtenant to several tracts of land located in Haskell County, Kansas. Michael Leathers and his brother Ronald Leathers each inherited half of these mineral rights from their mother. But an error in a quit claim deed subsequently executed between the brothers left it unclear whether Ronald’s one-half interest in the mineral estate had been conveyed to Michael. In a series of orders spanning several years, the district court (1) reformed the quit claim deed to reflect that Ronald had reserved his one-half interest in the mineral estate; (2) awarded half of Ronald’s one-half interest to Ronald’s wife Theresa (pursuant to Ronald and Theresa’s divorce decree); and (3) held that Ronald owed approximately $1.5 million to the IRS and that the IRS’s tax liens had first priority to any present and future royalties due to Ronald from his remaining one-quarter mineral interest. Ronald appealed, but finding no reversible error in the district court’s judgment with respect to the reformation and the interests, the Tenth Circuit affirmed the district court on all grounds. View "Leathers v. Leathers" on Justia Law

This petition for review returned to a long series of administrative cases arising out of the California energy crisis of 2000 and 2001 all centering on whether the Federal Energy Regulatory Commission (“FERC” or “Commission”) acted arbitrarily or capriciously in calculating certain refunds. FERC that FERC had acted outside its jurisdiction when ordering governmental entities/non-public utilities to pay refunds, the Commission vacated each of its orders in the California refund proceeding to the extent that they ordered governmental entities/nonpublic utilities to pay refunds. In sum, although the tariffs were not specific, the Ninth Circuit could not concluded FERC acted arbitrarily or capriciously in its construction of the tariffs. View "California Pub. Util. Comm'n v. Federal Energy Reg. Comm'n" on Justia Law

This case centered on a contract dispute between Clean Energy Collective LLC (CEC) and two defendants, Borrego Solar Systems, Inc. (Borrego) and 1115 Solar Development, LLC (1115 Solar). CEC was a Colorado limited liability company; Borrego was a California corporation headquartered in San Diego, and 1115 Solar was a Delaware limited liability company with its principal place of business in California. Borrego was 1115 Solar’s parent company and owned the latter in its entirety. CEC’s claims against Borrego and 1115 Solar arose from an asset purchase agreement (“APA”) to construct several solar photovoltaic projects. The APA specified that CEC would pay defendants to construct three power-generation projects in Massachusetts and allowed for additional projects pursuant to separate contracts governed by the APA’s terms. After the parties were unable to resolve disagreements regarding pricing and payments for projects subject to the APA (all of which were to be completed outside Colorado) CEC sued the defendants in Colorado, asserting claims for breach of contract and breach of warranty. The issue presented for the Supreme Court's review was whether the trial court erred in concluding Borrego was subject to general personal jurisdiction in Colorado. Because the trial court did not assess whether Borrego was essentially at home in Colorado, the Court concluded it did not fully apply the test announced in "Magill v. Ford Motor Co.," (379 P.3d 1033), and therefore erred in exercising general personal jurisdiction over Borrego. Applying the complete test itself, the Court concluded Borrego was not subject to general jurisdiction in Colorado. View "In re Clean Energy Collective LLC v. Borrego Solar Sys., Inc." on Justia Law

The issue in this case centered on the interpretation of the "right to travel" provision Article III of the Yakama Nation Treaty of 1855, in the context of importing fuel into Washington State. The Washington State Department of Licensing (Department) challenged Cougar Den Inc.'s importation of fuel without holding an importer's license and without paying state fuel taxes under former chapter 82.36 RCW, repealed by LAWS OF 2013, ch. 225, section 501, and former chapter 82.38 RCW (2007). An administrative law judge ruled in favor of Cougar Den, holding that the right to travel on highways should be interpreted to preempt the tax. The Department's director, Pat Kohler, reversed. On appeal, the Yakima County Superior Court reversed the director's order and ruled in favor of Cougar Den. Finding no reversible error in that judgment, the Washington Supreme Court affirmed. View "Cougar Den, Inc. v. Dep't of Licensing" on Justia Law

Dunn County appealed a judgment declaring the Industrial Commission had exclusive jurisdiction to determine the location of oil and gas waste treating plants. The Supreme Court affirmed, concluding the County lacked the power to veto the Commission's approval of the location for an oil and gas waste treating plant. View "Environmental Driven Solutions v. Dunn County" on Justia Law