Justia Energy, Oil & Gas Law Opinion Summaries

A fire destroyed a hydroponic tomato facility belonging to a new business, Sunnyland Farms, Inc. The day before the fire, Sunnyland's electricity had been shut off by its local utility, the Central New Mexico Electrical Cooperative (CNMEC), for nonpayment. Sunnyland's water pumps were powered by electricity, and without power, Sunnyland's facility had no water. Sunnyland sued CNMEC, alleging both that CNMEC had wrongfully suspended service, and if its electrical service had been in place, firefighters and Sunnyland employees would have been able to stop the fire from consuming the facility. After a bench trial, the court found CNMEC liable for negligence and breach of contract. The trial court awarded damages, including lost profits, of over $21 million in contract and tort, but reduced the tort damages by 80% for Sunnyland's comparative fault. It also awarded $100,000 in punitive damages. The parties cross-appealed to the Court of Appeals, which reversed the contract judgment, vacated the punitive damages, held that the lost profit damages were not supported by sufficient evidence, affirmed the trial court's offset of damages based on CNMEC's purchase of a subrogation lien, and affirmed the trial court's rulings on pre- and post-judgment interest. Sunnyland appealed. Upon review, the Supreme Court affirmed the Court of Appeals regarding the contract judgment, punitive damages, and interest, and reversed on the lost profit damages and the offset. The Court also took the opportunity of this case to re-examine the standard for consequential contract damages in New Mexico. View "Sunnyland Farms, Inc. v. Central N.M. Electric Cooperative, Inc." on Justia Law

The issue presented to the Supreme Court in this case was the appeal of a final order of the Energy Facility Siting Council that approved an amended site certificate for construction of a wind energy facility. Specifically, the issue was whether, in approving the amended site certificate, the council correctly declined to require compliance with a recently adopted county ordinance requiring a two-mile setback between wind turbines and rural residences pursuant to ORS 469.401(2). Upon review, the Supreme Court concluded that the council did not err in not requiring compliance with the ordinance. Furthermore, the Court concluded that the council did not err in denying petitioners' requests for a contested case proceeding. Therefore the council's final order approving the amended site certificate was affirmed.View "Blue Mountain Alliance v. Energy Facility Siting" on Justia Law

Plaintiffs sued Mobile Gas Service Corporation, pipeline operators and several other companies over the release of an odorant containing mercaptan. Mobile Gas, stated that, in fall 2011, Mobile Gas started receiving complaints about natural-gas leaks in the Eight Mile area; that the complaints centered around the facilities of Gulf South and Mobile Gas. plaintiffs, who resided in the Eight Mile area, filed their complaint, alleging nuisance, aggravated nuisance, negligence, and wantonness against the defendants arising from the release of mercaptan. A dispute arose over the issuance of a subpoena to the engineering firm that did the initial survey of the leak for Mobile Gas in response to an investigation by State Department of Environmental Management (ADEM). Mobile Gas objected to plaintiffs' attempt to subpoena the engineer; Mobile asserted that the engineer's report was privileged and therefore protected by the work-product privilege. The trial court denied Mobile Gas' objection. Mobile then filed its mandamus petition with the Supreme Court. Upon review, the Supreme Court concluded that Mobile Gas has established that the trial court exceeded its discretion when it disregarded the work-product privilege and entered an order compelling Mobile Gas to produce the documents included in the privilege log and when it denied Mobile Gas's motion for a protective order. Thus, Mobile Gas has established a clear legal right to a protective order regarding the production of the documents listed on the privilege log it submitted to the trial court. Accordingly, the Court granted Mobile Gas's petition for the writ of mandamus and directed the trial court to set aside its order compelling the production of documents included in the privilege log and to order those documents protected (including the engineer's report) from discovery. View "Parker et al. v. Mobile Gas Service Corporation et al." on Justia Law

This appeal was taken from a district court order in a quiet title action. While the appeal was pending, the Bureau of Land Management (BLM) declared twenty-seven unpatented mining claims asserted by Appellant forfeit and void by operation of law because Appellant failed to comply with the statutory mining claim maintenance requirement. Consequently, Respondent filed a motion to dismiss the appeal, arguing that the appeal was rendered moot when the BLM declared Appellant's asserted claims forfeit and void. The Supreme Court granted the motion to dismiss, holding that the appeal was moot because the controversy that existed at the beginning of this litigation concerning superior title was no longer at issue, and Appellant's claims did not exist as a matter of law.View "Majuba Mining, Ltd. v. Pumpkin Copper, Inc." on Justia Law

The State of Alaska Department of Natural Resources, Oil and Gas Division (DNR), petitioned the Supreme Court for review of a superior court decision that under AS 38.05.035, the lack of continuing best interest findings (BIF) at each phase of an oil and gas project violated article VIII of the Alaska Constitution and that the DNR must issue a written best interest finding at each step of a phased project to satisfy the constitution. Because best interest findings after the lease sale phase are not required under the Alaska Constitution or AS 38.05.035, the Supreme Court reversed the superior court's ruling. Furthermore, the Court held that the State was constitutionally required to consider the cumulative impacts of an oil and gas project at its later phases. View "Sullivan v. Resisting Environmental Destruction on Indigenous Lands" on Justia Law

New England Coalition, Inc. (NEC) filed a complaint to the Supreme Court seeking injunctive relief to enjoin Entergy Nuclear Vermont Yankee, LLC, and Entergy Nuclear Operations, Inc. (Entergy) from continuing to operate the Vermont Yankee Nuclear Power Plant. NEC alleged that Entergy was operating in violation of the Public Service Board’s final order approving the 2002 sale of the power plant to Entergy in Docket No. 6545. Finding no grounds to grant equitable relief, the Supreme Court dismissed NEC's complaint.View "In re Investigation into General Order No. 45" on Justia Law

Plaintiff Beckie Price sued Defendant High Pointe Oil Company, Inc. claiming, among other things, for damages for the mental anguish, emotional distress, and other psychological injuries sustained when High Pointe negligently pumped 400 gallons of oil into the basement of her house. The incident created a hazard such that Plaintiff's house had to be razed. High Pointe moved for summary judgment, aruging that noneconomic damages resulting from real property damage were not compensable. The circuit court denied part of High Pointe's motion, concluding that damages could be recovered in a negligence action. The jury awarded Plaintiff $100,000 for noneconomic damages; High Pointe moved for judgment notwithstanding the verdict. The circuit court denied High Pointe's motion, and the company subsequently appealed. Upon review, the Supreme Court found that no Michigan case has ever allowed a plaintiff to recover noneconomic damages resulting solely from the negligent destruction of property, either real or personal. "Rather, the common law of this state has long provided that the appropriate measure of damages in cases involving the negligent destruction of property is simply the cost of replacement or repair of the property." The Court reversed and remanded the case for entry of summary judgment in High Pointe's favor. View "Price v. High Pointe Oil Company, Inc." on Justia Law

The issue before the Supreme Court in this case involved a 1925 tax sale and the failure to give notice of the pending tax sale to the property owner. The specific issue in the present case was whether "Mennonite Board of Missions v. Adams," (462 U.S. 791 (1983)), could be applied retroactively to invalidate this 1925 tax sale. Plaintiffs, owners of oil, gas, and mineral interests, filed suit against four groups of record landowners including Pirate Lake Oil Corporation, the Mayronne Group, the Handlin-Jones Group, and the Zodiac Group, to determine the parties entitled to the proceeds of production. The Mayronne and Handlin-Jones Groups filed a motion for summary judgment, arguing the Zodiac Group had no interest in the property. The District Court granted the motion for summary judgment and dismissed the Zodiac Group’s claims of ownership in the property with prejudice. The Court of Appeal affirmed, finding the Zodiac Group’s ancestor in title was never the record owner of the property. Further, the Zodiac Group traced its ownership of the property to a 1925 tax sale, and there was no evidence the Sheriff provided notice of the sale to the record owner of the property, as required by the Fourteenth Amendment Due Process Clause under "Mennonite." Upon review, the Supreme Court found that "Mennonite" could not apply retroactively to invalidate the 1925 tax sale for lack of notice. Further, while the Zodiac Group’s ancestor in title was not the record owner of the property, any defect was cured by the five-year peremptive period of Article X, section 11 of the 1921 Louisiana Constitution. Accordingly, the Court reversed the judgments of the lower courts. View "Quantum Resources Management, LLC v. Pirate Lake Oil Corp." on Justia Law

Appellant Catherine Lakey and twelve other homeowners owned property that bordered a parcel owned by Puget Sound Energy, Inc. (PSE) on which there was an electrical substation. The homeowners sued PSE and the City of Kirkland after PSE constructed a new substation on PSE property. The homeowners sought review of the trial court's decision to exclude testimony of their expert under the "Frye" rule, and the court's ultimate decision to grant summary judgment on behalf of PSE. Upon review, the Supreme Court concluded that the trial court improperly excluded the expert's testimony under the "Frye" rule but properly excluded it under the Rules of Evidence ER702. Furthermore, the Court reversed the trial court's decision with respect to their Land Use Petition Act (LUPA) claims, finding that LUPA did not apply to the homeowners' inverse condemnation claim. The Court affirmed the trial court in all other respects.View "Lakey v. Puget Sound Energy" on Justia Law

Three main issues were raised on appeal to the Supreme Court in this case: (1) whether a school district is liable for oil and gas severance taxes on its royalty interests derived from oil and gas production on sixteenth-section land (the chancellor ruled that it is not); (2) whether the statute of limitations restricts the time period in which a school district can seek a refund of severance taxes that it had paid erroneously (the chancellor ruled that a three-year statute of limitations applied to any refund claims); and (3) whether a school district is liable for administrative expense taxes on its royalty interests derived from oil and gas production on sixteenth-section land (the chancellor ruled that it is). Upon review of the applicable code and in consideration of the arguments of the parties to this case, the Supreme Court found that the chancellor's judgment should be affirmed in part and reversed in part: (1) school districts are not liable for oil and gas severance taxes on sixteenth-section royalty interests: school districts, as political subdivisions of the state, are not included within the definition of "persons" made subject to these taxes; (2) pursuant to the Mississippi Constitution, statutes of limitation in civil causes do not run against the state or its subdivisions; and (3) school districts are liable for administrative expense taxes on sixteenth-section royalty interests: "[t]hese assessments are 'fees,' not 'taxes'; the Legislature has expressly made the state and its subdivisions subject to these fees; and no constitutional provision or other law is violated by requiring school districts to pay them."View "Jones County School District v. Mississippi Department of Revenue" on Justia Law