Justia Energy, Oil & Gas Law Opinion Summaries

Articles Posted in Civil Procedure
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Plaintiff Granite State Trade School, LLC (GSTS) was a gas training school providing fuel gas fitting training courses and licensing exams in New Hampshire since 2007. GSTS was approved as a gas training school prior to the adoption of the current gas fitting regulatory framework. In 2020, defendant New Hampshire Mechanical Licensing Board (Board) directed GSTS to submit to an audit by producing its curriculum, instructor information, and exam materials. In response, GSTS brought suit seeking a declaration that “GSTS training and testing is grandfathered and exempt from compliance” with the audit request because its programs predated the current regulations. Alternatively, GSTS asked the trial court to find Rules Saf-Mec 308 and 610 “arbitrary and capricious” because the rules failed to protect the “integrity and security of the program education materials, and exams,” and were “overburdensome.” GSTS sought to enjoin the Board from: (1) requiring the production of proprietary materials created by GSTS; (2) terminating its training program; and (3) declining to accept certification from GSTS. The Board moved to dismiss; the trial court granted the Board’s motion. The court ruled that the plain and ordinary meaning of the language contained in Rules Saf-Mec 308 and 610 did not “relieve prior approved programs from their continuing obligations” to comply with the regulatory scheme. The trial court also ruled that Saf-Mec 610 “is a valid exercise of the state’s police power and not arbitrary or capricious” and dismissed GSTS’s claim that Saf-Mec 308 was arbitrary and capricious. Finding no reversible error in that judgment, the New Hampshire Supreme Court affirmed. View "Granite State Trade School, LLC v. New Hampshire Mechanical Licensing Board" on Justia Law

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The First Circuit affirmed in part and reversed in part Petitioners' petition for a writ of review seeking interlocutory review of the orders of the district court denying Petitioners' motion to dismiss and motion to set aside default, holding that the district court abused its discretion in denying the motion to set aside the default judgment.At issue was subject matter jurisdiction and personal jurisdiction based on service by publication. Petitioners argued that the failure to serve Defendants with a summons stripped the district court of both subject matter jurisdiction and personal jurisdiction. The First Circuit held (1) absent a statute or rule to the contrary, no summons is required when service is accomplished by publication; (2) the district court correctly determined that a summons is not required as to those defendants who are properly subject to service by publication; but (3) the court erred in finding the service by publication conferred personal jurisdiction over the defendants with a known address. View "Hopeful v. Etchepare, LLC" on Justia Law

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The Energy Policy and Conservation Act (“EPCA”), expressly preempts State and local regulations concerning the energy use of many natural gas appliances, including those used in household and restaurant kitchens. Instead of directly banning those appliances in new buildings, the City of Berkeley took a more circuitous route to the same result. It enacted a building code that prohibits natural gas piping into those buildings, rendering the gas appliances useless. The California Restaurant Association (“CRA”), whose members include restaurateurs and chefs, challenged Berkeley’s regulation, raising an EPCA preemption claim. The district court dismissed the suit.   The Ninth Circuit reversed the district court’s dismissal. The panel held that the CRA demonstrated that (1) at least one of its members had suffered an injury in fact, that was (a) concrete and particularized and (b) actual or imminent rather than conjectural or hypothetical; (2) the injury was fairly traceable to the challenged action; and (3) it was likely, not merely speculative, that the injury would be redressed by a favorable decision. The panel held that, by its plain text and structure, the Act’s preemption provision encompasses building codes that regulate natural gas use by covered products. By preventing such appliances from using natural gas, the Berkeley building code did exactly that. The panel reversed and remanded for further proceedings. View "CRA V. CITY OF BERKELEY" on Justia Law

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This matter arose out of disputes between Antero Resources Corporation (“Antero”) and Airport Land Partners, Ltd (“Airport Land”) and other royalty owners (collectively, “Royalty Owners”) over whether Antero could deduct certain post-production costs from royalty payments under the applicable leases’ royalty clauses. Royalty Owners alleged that Antero has underpaid royalties in violation of their respective lease contracts. Royalty Owners filed individual breach-of-contract suits against Antero for dates between December 2016 and April 2017. Antero moved to dismiss the suits, arguing that the claims should have been brought before the Colorado Oil and Gas Conservation Commission (“COGCC” or “the Commission”) in the first instance. Statutorily, COGCC lacked jurisdiction under section 34-60-118.5(5), C.R.S. (2022), to engage in contract interpretation to resolve a bona fide dispute between parties under an oil and gas lease. But in 2017, without any intervening change to explain the shift, two district courts changed course, asserting that COGCC had responsibility for resolving contract disputes on the theory either that the contract terms were unambiguous or that settled law compelled a certain interpretation. The Colorado Supreme Court returned to the longstanding statutory mandate that COGCC lacked jurisdiction to resolve bona fide disputes of contract interpretation and held that such a dispute exists where the parties disagree in good faith about the meaning or application of a relevant contract term. View "Antero Resources v. Airport Land Partners" on Justia Law

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Petitioners sought the Oregon Supreme Court's review of an order of the Energy Facility Siting Council (EFSC) that approved an Idaho Power Company (Idaho Power) application for a site certificate to construct a high-voltage electrical transmission line from Boardman, Oregon, to Hemingway, Idaho. Petitioner STOP B2H Coalition (Stop B2H) contended that EFSC erred by : (1) denying Stop B2H’s request for full party status in the contested case proceedings; (2) granting an exception or variance to noise level requirements; (3) modifying the governing rule to limit the noise assessment to landowners within one-half mile of the transmission line; and (4) misapplying EFSC’s rules on the visual impacts from the transmission line. Petitioner Michael McAllister contended EFSC erred by failing to require Idaho Power to include in its application an “environmentally preferable” location for a segment of the transmission line in Union County. Petitioner Irene Gilbert contended EFSC erred by: (1) denying Gilbert’s request for full party status; (2) failing to document the impacts on historic properties and mitigation measures; (3) delegating future approval of mitigation plans to the Oregon Department of Energy (ODOE); (4) relying on federal standards to determine mitigation requirements for historic properties; and (5) modifying a mandatory site certificate condition without rulemaking. Applying the governing standard of review, the Supreme Court affirmed EFSC’s final order approving the site certificate for this transmission line. View "Stop B2H Coalition v. Dept. of Energy" on Justia Law

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Angus Kennedy owned real property and mineral interests in McKenzie County, North Dakota. In 1960, Angus and his wife, Lois, executed two deeds conveying the surface and “excepting and reserving unto the parties of the first part, their heirs, successors or assigns, all right, title and interest in and to any and all . . . minerals in or under the foregoing described lands.” Lois did not own an interest in the property when Angus and Lois Kennedy executed the deeds. Angus died in 1965, and Lois died in 1980. Angus and Lois did not have children together. Angus had six children from a previous marriage. Angus' heirs executed numerous mineral leases for the property. Lois had one child, Julia Nevin, who died in 1989. In 2016 and 2017, Julia Nevin’s surviving husband, Stanley Nevin, executed mineral leases with Northern Oil and Gas, Inc. In 2018, Stanley sued the successors in interest to Angus, alleging Lois owned half of the minerals reserved in the 1960 deeds. In response, the Angus heirs claimed Angus did not intend to reserve any minerals to Lois because she did not own an interest in the property conveyed in the 1960 deeds. The district court granted Northern Oil’s motion to intervene. Northern Oil appeals the quiet title judgment deciding Northern Oil did not own mineral interests in the McKenzie County property, arguing the district court erred in concluding the deeds at issue were ambiguous as to whether Angus intended to reserve minerals to his wife, Lois. Finding no reversible error in the trial court judgment, the North Dakota Supreme Court affirmed. View "Nevin, et al. v. Kennedy, et al." on Justia Law

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In 2018, Mwande Serge Kpiele-Poda ("Employee") was injured at a wellsite while repairing a conveyor that activated and crushed his legs. While Employee's Workers' Compensation claim was still pending, he filed a petition asserting negligence and products liability against his employers, two wellsite operators, and the manufacturers and distributors of the conveyor. Ovintiv Mid-Continent, Inc. was named in the body of the petition but omitted from the caption. After the statute of limitations period expired, Employee amended his petition to add Ovintiv Mid-Continent, Inc. as a defendant in the petition's caption. A second amended petition added other parties. Ovintiv Mid-Continent, Inc. moved to dismiss arguing the claim was time-barred because the amended petition did not relate back to the first petition. Employee's employers also moved to dismiss arguing the Administrative Workers' Compensation Act and Oklahoma precedent precluded employees from simultaneously maintaining an action before the Workers' Compensation Commission and in the district court. The district court granted each dismissal motion and certified each order as appealable. The Oklahoma Supreme Court retained and consolidated Employee's separate appeals, holding: (1) the district court erred when it dismissed Employee's action against Ovintiv Mid-Continent, Inc. as time-barred; and (2) the district court properly dismissed Employee's intentional tort action for lack of subject matter jurisdiction. View "Kpiele-Poda v. Patterson-UTI Energy, et al." on Justia Law

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The Edison Electric Institute and NorthWestern Corporation, d/b/a NorthWestern Energy (collectively, “Utilities”) petition for review of an order by the Federal Energy Regulatory Commission (“Commission”) in which the Commission granted Broadview Solar’s application to become a qualifying facility under the Public Utility Regulatory Policies Act of 1978 (“PURPA”). The Solar Energy Industries Association (“SEIA”) petitions for review of the Commission’s denial of its motion to intervene in the adjudication of Broadview’s application.   The DC Circuit concluded that the Commission’s interpretation of the statute is entitled to deference and that the Commission did not act arbitrarily or capriciously and accordingly denied the Utilities’ petitions. The court explained that the Utilities challenge the Commission’s decision to look at Broadview’s instantaneous net power output and not its power output over time. The statute measures “power production capacity” in “megawatts.” But power production over time is measured in “megawatt-hours.” Rather than being arbitrary and capricious, the Commission’s focus on instantaneous power production adhered to the statutory language.   Further, the court dismissed SEIA’s petitions because it lacks Article III standing. The court explained that SEIA’s failure to timely intervene is the result of its own mistaken judgment. The effect of that mistake—SEIA’s inability to participate in the Commission’s proceedings—does not give rise to an Article III injury. View "Solar Energy Industries Association v. FERC" on Justia Law

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Citizen groups challenged the Bureau of Land Management’s (“BLM”) environmental assessments (“EAs”) and environmental assessment addendum analyzing the environmental impact of 370 applications for permits to drill (“APDs”) for oil and gas in the Mancos Shale and Gallup Sandstone formations in the San Juan Basin of New Mexico. These challenges came after a separate but related case in which the Tenth Circuit Court of Appeals remanded to the district court with instructions to vacate five EAs analyzing the impacts of APDs in the area because BLM had failed to consider the cumulative environmental impacts as required by the National Environmental Policy Act (“NEPA”). BLM prepared an EA Addendum to remedy the defects in those five EAs, as well as potential defects in eighty-one other EAs that also supported approvals of APDs in the area. Citizen Groups argued these eighty-one EAs and the EA Addendum violated NEPA because BLM: (1) improperly predetermined the outcome of the EA Addendum; and (2) failed to take a hard look at the environmental impacts of the APD approvals related to greenhouse gas (“GHG”) emissions, water resources, and air quality. BLM disagreed, contending the challenges to some of the APDs were not justiciable because the APDs had not yet been approved. The district court affirmed the agency action, determining: (1) Citizen Groups’ claims based on APD’s that had not been approved were not ripe for judicial review; (2) BLM did not unlawfully predetermine the outcome of the EA Addendum; and (3) BLM took a hard look at the environmental impacts of the APD approvals. The Tenth Circuit agreed with BLM and the district court that the unapproved APDs were not ripe and accordingly, limited its review to the APDs that had been approved. Turning to Citizen Groups’ two primary arguments on the merits, the appellate court held: (1) BLM did not improperly predetermine the outcome of the EA Addendum, but, even considering that addendum; (2) BLM’s analysis was arbitrary and capricious because it failed to take a hard look at the environmental impacts from GHG emissions and hazardous air pollutant emissions. However, the Court concluded BLM’s analysis of the cumulative impacts to water resources was sufficient under NEPA. View "Dine Citizens Against Ruining Our Environment, et al. v. Haaland, et al." on Justia Law

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This matter arose from a 2006 class action suit instituted by Steve Crooks and Era Lee Crooks (“Class Plaintiffs”) against the State through the Louisiana Department of Natural Resources (“LDNR”) concerning the ownership of riverbanks in the Catahoula Basin and subsequent mineral royalty payments. The Louisiana Supreme Court granted review in this case to address whether mandamus may lie to compel the State to pay a judgment rendered against it for mineral royalty payments. Finding that the payment of a judgment concerning the return of mineral royalties received by the State required legislative appropriation, an act that is discretionary in nature, the appellate court erred in issuing the writ of mandamus. View "Crooks, et al. v. Louisiana, Dept. of Nat. Resources" on Justia Law