Justia Energy, Oil & Gas Law Opinion Summaries

Articles Posted in Constitutional Law
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Wayne Morrow filed a permissive appeal to the Circuit Court's order denying his request for a judgment declaring that the $100,000 cap on damages in section 11-47-190, Ala. Code 1975, applied to Morrow, a municipal employee who was sued in his individual capacity. In 2009, Alice Yu sought to have Alabama Power Company restore electrical service in her name at a commercial building she was leasing. The premises had been without power for approximately eight months. The City of Montgomery sent Morrow to perform an electrical inspection of the premises and clear the premises for service before electrical service was restored. Keandarick Russell, a minor, was staying with his great-grandmother, who lived next door to the premises. Russell was playing on the concrete pad on which the air-conditioning system was located and was electrocuted when he came in contact with a chain-link fence adjacent to the premises. When the incident occurred, wires from an uncovered junction box at the electrical source had come in contact with a portion of the fence, and, as a result, the fence had become electrified. Russell was electrocuted when he touched the fence. Shameka Caldwell, as Russell's mother and next friend, filed a wrongful-death action against multiple defendants, including Morrow and Yu for two fictitiously named defendants. In the amended complaint, Caldwell alleged that Morrow had negligently, recklessly, and/or wantonly inspected the premises and had negligently, recklessly, and/or wantonly allowed electrical service to be restored to the premises. In his answer, Morrow asserted that he was entitled to State immunity, to State-agent immunity, and to qualified immunity. Upon review, the Supreme Court concluded the plain language of 11-47-190 did not limit the recovery on a claim against a municipal employee in his or her individual capacity, the $100,000 statutory cap on recovery would not apply to Caldwell's claims against Morrow. Therefore, the trial court properly denied Morrow's request for a judgment declaring that it would. View "Morrow v. Caldwell" on Justia Law

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Shirley Adams and other landowners challenged a petition of the U.S. Oil and Gas Association that proposed amendments to Statewide Rule 681 which authorized the surface and subsurface landspreading of NORM as additional methods of disposal. The Mississippi Oil and Gas Board approved the proposed amendments to Rule 68, and its decision was upheld by the Chancery Court. After careful consideration, the Supreme Court found that the landowners failed to prove that the Board's adoption of amended Rule 68 was arbitrary and capricious or against the weight of the evidence. In addition, the Board's decision did not violate federal law or the landowners' constitutional rights; however, the Board violated state law when it exceeded its statutory authority under Section 53-1-17 by amending Rule 68 without gaining the approval of the Mississippi Commission on Environmental Quality. Accordingly, the Chancery Court's decision was reversed and the case remanded for review by the Commission.View "Adams v. Mississippi State Oil & Gas Board" on Justia Law

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CEnergy filed suit against Glenmore claiming a denial of its right under the Fourteenth Amendment to substantive due process and a violation of the town's state law obligation to deal in good faith. While CEnergy obtained a conditional use permit from Glenmore to develop a wind farm, the company failed to obtain required building permits in time to take advantage of a lucrative opportunity to sell electricity generated by wind turbines to a Wisconsin power company. The court concluded that the town board's decision to delay action on CEnergy's building permit requests could not have been arbitrary in the constitutional sense. Even if the board's treatment of the building permit applications had been arbitrary in the constitutional sense, CEnergy still would have failed to state a substantive due process claim where a plaintiff who ignores potential state law remedies cannot state a substantive due process claim based on a state-created property right. Accordingly, the court affirmed the judgment of the district court. View "CEnergy-Glenmore Wind Farm #1 v. Town of Glenmore" on Justia Law

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Issues of constitutional import stemming from cross-appeals taken from the Commonwealth Court's ruling on expedited challenges to Act 13 of 2012 were before the Supreme Court in this case. Act 13 contained sweeping legislation affecting Pennsylvania’s environment particularly the exploitation and recovery of natural gas in Marcellus Shale. The litigation was accelerated in part because the legislation itself was designed to take effect quickly and imposed obligations which required the challengers to formulate their legal positions swiftly; and in part in recognition of the economic importance of the legislation to the Commonwealth and its citizens. Following careful deliberation, the Supreme Court's decision found several challenged provisions of Act 13 were unconstitutional. Madame Justice Todd, and Mr. Justice McCaffery, found that several core provisions of Act 13 violated the Commonwealth’s duties as trustee of Pennsylvania’s public natural resources under the Environmental Rights Amendment; other challenges lacked merit; and several issues required further Commonwealth Court proceedings. Mr. Justice Baer, concurred in the mandate, and joined the majority in all but Parts III and VI(C); Justice Baer would have found the "core constitutional infirmity" sounded in substantive due process. Accordingly, the Commonwealth Court was affirmed in part, reversed in part, and the case remanded for further proceedings. View "Robinson Township, et al v. Pa. Public Utility Commission and Attorney General -" on Justia Law

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Plaintiffs filed suit challenging a Maryland program subsidizing the participation of a new power plant in the federal wholesale energy market. Maryland's plan was ultimately formalized in the Generation Order. The district court agreed with plaintiffs' contention that the Maryland scheme was preempted under the Federal Power Act's (FPA), 16 U.S.C. 824(b)(1), authorizing provisions, which grant exclusive authority over interstate rates to FERC. The court concluded that the Generation Order is field preempted because it seeks to regulate a field that the FPA has occupied. The court also concluded that the Generation Order is conflict preempted because it conflicts with the auction rates approved by FERC and conflicts with PJM's new entry price adjustment (NEPA). Accordingly, the court held that the Generation Order was preempted under federal law and affirmed the judgment of the district court. View "PPL EnergyPlus, LLC v. Nazarian" on Justia Law

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North Central Electric Cooperative appealed a district court judgment affirming a Public Service Commission order that dismissed its complaint against Otter Tail Power Company. The Commission decided it did not have regulatory authority over Otter Tail's extension of electric service to a facility owned by the Turtle Mountain Band of Chippewa Indians on tribal trust land within the Turtle Mountain Indian Reservation. North Central argued on appeal: (1) the Commission has jurisdiction under North Dakota law; and (2) the Commission's findings were not supported by a preponderance of the evidence and did not sufficiently address North Central's evidence. Upon review, the Supreme Court affirmed, concluding the Commission did not err in deciding it lacked authority to regulate the Tribe's decision to have Otter Tail provide electric service to a tribal-owned facility on tribal-owned land within the reservation.View "North Central Electric Coop., Inc. v. Public Service Commission" on Justia Law

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At issue in this case was the siting of a wind powered energy facility under the energy facilities site locations act (EFSLA). The State Energy Facility Site Evaluation Council (EFSEC), after reducing the scope of the project applied for, recommended that the governor approve the project, which she did. Opponents of the project then sought judicial review under the Administrative Procedure Act (APA). The superior court certified the issue directly to the Supreme Court. Upon review, the Court found no basis to reverse the EFSEC's recommendation or the governor's approval of the project. View "Friends of Columbia Gorge, Inc. v. State Energy Facility Site Evaluation Council" on Justia Law

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South Alabama Gas District (SAG) appealed a circuit court order enjoining it from selling liquified petroleum ("LP") gas and related appliances outside its member cities. Four individual taxpayers and Fletcher Smith Butane Co., Inc., sued SAG seeking both an injunction and damages for SAG's alleged violation of 11-50-266, as made applicable to gas districts by 11-50-399. The trial court bifurcated the claim for injunctive relief and the damages claim, and held a bench trial on the claim for injunctive relief. SAG argued that the notice and buy-out provisions did not apply to it because LP gas is not a "manufactured gas" within the terms of the statute. The trial court found otherwise and enjoined SAG from selling LP gas if it did not comply with 11-50-266. The circuit court found that the taxpayers lacked standing to challenge SAG's appliance sales. With regard to Fletcher Smith, SAG argued (among other things), that Fletcher Smith lacked standing because it sold its assets and was no longer engaging in the LP gas business. As proof, SAG cited Fletcher Smith's to "Requests for Admissions of Fact." After review of the circuit court record and the admissions cited by SAG in its appeal brief, the Supreme Court found that Fletcher Smith's claims for prospective relief became moot. "Because mootness goes to justiciability, this Court will not consider the merits of a claim that is moot." View "South Alabama Gas District v. Knight" on Justia Law

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The Supreme Court held that CRCP 26(b) requires a trial court take an active role managing discovery on questions of scope. The trial court must determine the appropriate scope of discovery in light of the reasonable needs of the case and tailor discovery to those needs. To resolve a dispute regarding the proper scope of discovery, the trial court should, at a minimum, consider the cost–benefit and proportionality factors set forth in CRCP 26(b)(2)(F). The Court also held that title opinions may contain privileged attorney–client communications if the parameters of that doctrine are met. View "In re DCP Midstream, LLP v. Anadarko Petroleum Corporation" on Justia Law

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The Forrest County Board of Supervisors passed an ordinance requiring oil and gas facilities located within the county be fenced in. Delphi Oil, Inc. appealed a circuit court order that upheld the Board's ordinance, arguing that the regulatory authority of the State Oil and Gas Board (OGB) preempted any local regulations of oil and gas activity. The Supreme Court found the state law did not preempt the local ordinance, and affirmed.View "Delphi Oil, Inc. v. Forrest County Board of Supervisors" on Justia Law