Justia Energy, Oil & Gas Law Opinion Summaries
Articles Posted in Constitutional Law
PPL Montana, LLC v. Montana
This case concerned three rivers which flow through Montana and then beyond its borders. At issue was whether discrete, identifiable segments of these rivers in Montana were nonnavigable, as federal law defined that concept for purposes of determining whether the State acquired title to the riverbeds underlying those segments, when the State entered the Union in 1989. Montana contended that the rivers must be found navigable at the disputed locations. The Court held that the Montana Supreme Court's ruling that Montana owned and could charge for use of the riverbeds at issue was based on an infirm legal understanding of the Court's rules of navigability for title under the equal-footing doctrine. The Montana Supreme Court erred in its treatment of the question of river segments and portage and erred as a matter of law in relying on evidence of present-day primarily recreational use of the Madison River. Because this analysis was sufficient to require reversal, the Court declined to decide whether the State Supreme Court also erred as to the burden of proof regarding navigability. Montana's suggestion that denying the State title to the disputed riverbeds would undermine the public trust doctrine underscored its misapprehension of the equal-footing and public trust doctrines. Finally, the reliance by petitioner and its predecessors in title on the State's long failure to assert title to the riverbeds was some evidence supporting the conclusion that the river segments over those beds were nonnavigable for purposes of the equal-footing doctrine. Accordingly, the judgment was reversed. View "PPL Montana, LLC v. Montana" on Justia Law
Rocky Mountain Power v. Jensen
Defendants-Appellants Stanley and Catherine Jensen, as trustees of the Stanley and Catherine Jensen Family Living Trust, appealed the district court's decision that granted Plaintiff-Respondent Rocky Mountain Power's motion for summary judgment. Defendants are record owners of a cattle ranch that lies within a corridor established by the Utility for a 345 kilovolt transmission line. The Utility sought a perpetual easement and a right of way for the Utility and its successors and assigns to locate, construct, reconstruct, operate, and maintain a 150 foot wide high-voltage overhead power line utility corridor through the eastern part of Defendants' property. In 2008, Defendants entered into an Occupancy Agreement with the Utility, waiving all defenses to the Utility's acquisition of the easement, except the claim of just compensation. Upon execution of the Agreement, Defendants were paid $215,630 which would be deducted from any final determination of just compensation for the easement. Under the terms of the Occupancy Agreement, if just compensation was determined to be less than $215,630, Defendants were not required to return the difference. The parties were unable to reach an agreement for just compensation within a specified time, so the Utility filed its Complaint in early 2009, seeking a decree of condemnation, an award of easement, and specific performance of the Occupancy Agreement. The Utility filed a motion for summary judgment, contending that Defendants did not identify any expert witnesses or laid a proper foundation for any probative evidence of just compensation. Upon review, the Supreme Court found that Defendants failed to establish a genuine issue of material fact to establish the fair market value of their property. Accordingly, the Court affirmed the district court's judgment.
View "Rocky Mountain Power v. Jensen" on Justia Law
Campbell County v. Royal
In this action, the trial court granted summary judgment against a locality, holding it liable to landowners under the State Water Control Law, Va. Code Ann. 62.1-44.2 through -44.34:28, in particular Code 62.1-44.34:18(C) of the Oil Discharge Law, for the contamination of groundwater by leachate and landfill gas. The Supreme Court reversed the trial court's judgment, holding that the trial court erred in awarding summary judgment to the landowners and finding the locality liable under the Oil Discharge Law, as the Oil Discharge Law does not apply to the passive, gradual seepage of leachate and landfill gas into groundwater. View "Campbell County v. Royal" on Justia Law
Alliance to Protect Nantucket Sound, Inc. v. Dept. of Public Utilities & others (No. 1)
This matter came before the court on a reservation and report by a single justice of the court of a decision and final order of the department approving a power purchase agreement (PPA) that National Grid entered into with Cape Wind. The four parties that brought the appeal were all interveners in the department's proceeding. They claim that the PPA violated the commerce clause of the United States Constitution; the department improperly found that the PPA was cost effective and in the public interest; the contract should have been solicited through competitive bidding and subject to a cap on its size; and the department erroneously both approved a method for recovering costs from all distribution customers and required that the contract facilitate financing of a renewable energy generation source. The interveners sought reversal of the department's decision and order, and a remand to the department for further proceedings. The court reviewed the department's decision under G.L.c. 25, section 5, and gave deference to the department's expertise and experience, remanding to the county court where the single justice will affirm the department's decision. View "Alliance to Protect Nantucket Sound, Inc. v. Dept. of Public Utilities & others (No. 1)" on Justia Law
Huber v. Colo. Mining Ass’n
The issue on appeal to the Supreme Court was whether the Court of Appeals' ruling that the Article X, Section 20 of the Colorado Constitution (Amendment 1) required statewide voter approval each time the Colorado Department of Revenue calculated an increase in the amount of tax due per ton of coal extracted as directed by the formula codified in C.R.S. 39-29-106. After Amendment 1 went into effect, the Department suspended using the tax mechanism for calculating upward adjustments in the amount of coal severance tax owed based on inflation. Following an auditor's review in 2006, an Attorney General's opinion and a rule-making proceedings, the Department recommended applying the statute to calculate the tax due. Implementation resorted in a tax of $0.76 per ton of coal as compared to $0.56 per ton collected in 1992 when Amendment 1 first passed. The Colorado Mining Association and taxpayer coal companies filed an action challenging collection of the $0.76 per ton amount. Colorado Mining asserted that whenever the Department calculated an upward adjustment in the amount of tax due under the statute, it must obtain voter approval. The Court of Appeals agreed, but the Supreme Court disagreed. The Court held that the Department's implementation of section 39-29-106 was not a tax increase, but a "non-discretionary duty required by a pre-Amendment 1 taxing statute which did not require voter approval." Accordingly, the Court reversed the appellate court's judgment and reinstated the trial court's judgment, which held that the Department must implement the statute as written.
View "Huber v. Colo. Mining Ass'n" on Justia Law
Zimmerman v. Bd. of County Comm’rs
The Board of County Commissioners of Wabaunsee County amended its zoning regulations to permit small wind energy conversion systems. The regulations, however, prohibited the placement of commercial wind energy conversion systems in the county. Plaintiffs and Intervenors, landowners and owners of wind rights in the county, sued the Board, seeking a judicial declaration that the Board's action be null and void. The district court granted the Board's various dispositive motions. The Supreme Court affirmed in part and reversed in part, holding, inter alia, that (1) the district court did not err by disposing of a Takings Clause claim as a matter of law, and because there was no taking, the court did not err in also disposing of Intervenors' related takings-based claim under 42 U.S.C. 1983 and their claim for inverse condemnation; (2) the district court did not err in dismissing a Commerce Clause claim as a matter of law, but a claim alleging the Board's decision placed incidental burdens on interstate commerce that outweighed the benefits was remanded for analysis under Pike v. Bruce Church; and (3) because Intervenors also made a burden-based claim under the Commerce Clause in their 42 U.S.C. 1983 contention, that specific claim was also remanded. View "Zimmerman v. Bd. of County Comm'rs" on Justia Law
Alvarez, et al. v. Chevron Corp., et al.
Plaintiffs appealed the district court's dismissal pursuant to Federal Rule of Civil Procedure 12(b)(6) of their putative consumer class action against defendants. Plaintiffs also appealed the district court's denial of leave to amend their second amended complaint, alleging that the design of defendants' retail gasoline dispensers was fundamentally flawed due to a residual fuel occurrence: when plaintiffs purchased premium grade fuel, they received between two and three-tenths of a gallon of residual fuel from the previous transaction, and therefore were overcharged when the previous purchaser had selected mid-range or regular grade fuel. The court agreed with the district court that plaintiffs' well-pleaded factual allegations, accepted as true, did not give rise to a reasonable inference that defendants have committed any misconduct for which the court could grant relief. Accordingly, further amendment would be futile and the district court did not abuse its discretion in denying leave to amend. View "Alvarez, et al. v. Chevron Corp., et al." on Justia Law
St. Charles County v. Laclede Gas Co.
Laclede Gas Company maintained gas lines along Pitman Hill Road in St. Charles County. Pitman Hill Road and the gas lines were located within areas established as public roads on five recorded subdivision plats. Each of the subdivision plats first established public roads and then designated the roads as utility easements. The plats specifically stated that one of the purposes of the utility easements was for the installation and maintenance of gas lines. The County planned to widen Pitman Hill Road, which required Laclede to relocate its gas lines. Laclede declined to pay for the relocation, after which the County filed a declaratory judgment action to require Laclede to bear the cost of relocation. The circuit court entered summary judgment in favor of the County. The Supreme Court reversed, holding that the County was required to reimburse Laclede for displacing the gas lines from Laclede's utility easement because the easements were constitutionally cognizable property interests and, therefore, requiring Laclede to relocate its gas lines without compensation would amount to an unconstitutional taking of private property. View "St. Charles County v. Laclede Gas Co." on Justia Law
Voices of the Wetlands v. CA State Water Resources Control Bd., et al.
Plaintiff, an environmental organization, filed this administrative mandamus action to challenge the issuance of a federally required permit authorizing the Moss Landing Powerplant (MLPP) to draw cooling water from the adjacent Moss Landing Harbor and Elkhorn Slough. This case presented issues concerning the technological and environmental standards, and the procedures for administrative and judicial review, that apply when a thermal powerplant, while pursuing the issuance or renewal of a cooling water intake permit from a regional board, also sought necessary approval from the State Energy Resources Conservation and Development Commission (Energy Commission), of a plan to add additional generating units to the plant, with related modifications to the cooling intake system. The court held that the superior court had jurisdiction to entertain the administrative mandamus petition here under review. The court also held that the trial court erred when it deferred a final judgment, ordered an interlocutory remand to the board for further "comprehensive" examination of that issue, then denied mandamus after determining that the additional evidence and analysis considered by the board on remand supported the board's reaffirmed findings. The court further held that recent Supreme Court authority confirmed that, when applying federal Clean Water Act (CWA), 33 U.S.C. 1326(b), standards for the issuance of this permit, the Regional Water Board properly utilized cost-benefit analysis. The court declined to address several other issues discussed by the parties. Accordingly, the court affirmed the judgment of the Court of Appeals. View "Voices of the Wetlands v. CA State Water Resources Control Bd., et al." on Justia Law
K2 America Corp. v. Roland Oil & Gas. LLC
Plaintiff appealed the dismissal for lack of subject matter jurisdiction of its action against defendant, alleging tort, contract, and state statutory claims and seeking, among other remedies, a constructive trust and declaratory judgment over an oil and gas lease located on allotted land, wherein title to the land was held by the United States in trust for various Indian allottees. At issue was whether the district court had federal jurisdiction. The court held that 28 U.S.C. 1360(b), 28 U.S.C. 1331, and 25 U.S.C. 345 did not grant federal jurisdiction and therefore, plaintiff presented no basis for concluding that the action was within the "limited jurisdiction" of federal courts. Accordingly, the district court properly dismissed the suit based on lack of subject matter jurisdiction and the court did not need to reach any other issues raised by the parties, including exhaustion of tribal remedies. The court noted, however, that its holding did not preclude plaintiff from seeking relief in Blackfeet Tribal Court. View "K2 America Corp. v. Roland Oil & Gas. LLC" on Justia Law