Justia Energy, Oil & Gas Law Opinion Summaries

Thomas Lockhart appealed an order finding him in contempt, imposing a sanction requiring the forfeiture of $300,000 to Douglas Arnold and Thomas Arnold, and divesting him of any management rights in Trident Resources, LLC. In 2013, Lockhart and the Arnolds entered into business capturing and compressing natural gas. The parties formed Trident Resources, with Lockhart owning a 70% interest and each of the Arnolds owning a 15% interest. Trident Resources owned two well processing units (WPUs), each purchased for $300,000. In 2015, the Arnolds initiated this action seeking reformation of the Trident Resources’ member control and operating agreement to clarify the parties’ respective ownership interests. Following a bench trial, the court ordered the entry of a judgment confirming Lockhart’s ownership of a 70% interest and each of the Arnold’s 15% ownership interest in Trident Resources. Before the entry of the judgment, Lockhart informed the Arnolds he had received an offer from Black Butte Resources to purchase one of the WPUs for $300,000. The Arnolds consented to the sale, provided the proceeds were deposited into their attorney’s trust account. When it appeared Lockhart had failed to deposit the funds into the trust account, the Arnolds filed a motion seeking to discover the location of the WPU and the sale proceeds. Before the hearing on the Arnolds’ motion, Lockhart deposited $100,000 into the account. The trial court ordered Lockhart to provide information regarding the WPU sold and the date the remaining $200,000 would be deposited. Lockhart eventually deposited $200,000 into the trust account and filed an affidavit stating Black Butte had purchased the WPU and the WPU had been transferred to Black Butte. Subsequent to Lockhart filing his affidavit, the Arnolds learned the WPU had not been sold to Black Butte for $300,000, but had instead been sold to another party for $500,000. The Arnolds filed a motion requesting the court to find Lockhart in contempt and for the imposition of appropriate sanctions. At the hearing on the motion, Lockhart conceded his affidavit was false and stipulated to the entry of a finding of contempt. On appeal, Lockhart argued the district court’s order improperly imposed a punitive sanction for his contempt. The North Dakota Supreme Court concluded the circumstances necessary for the imposition of a punitive sanction were not present prior to the imposition of the sanction in this case. The Court was left with an insufficient record to review the appropriateness of the imposition of a remedial sanction in the amount ordered by the trial court. reverse and remand this case to the district court for further findings in support of the sanction imposed for Lockhart’s contempt. The trial court judgment was reversed and the matter remanded for further findings. View "Arnold, et al. v. Trident Resources, et al." on Justia Law

The Supreme Judicial Court affirmed the decision of the Business and Consumer Docket affirming a decision of the Secretary of State that validated a direct initiative petition regarding the New England Clean Energy Connect Transmission Project (NECEC), holding that the Secretary of State properly validated the petition.On appeal, Delbert Reed claimed that the Secretary of State erred by (1) validating the petitions notarized by three notaries based on the Secretary of State's misinterpretation and misapplication of Me. Rev. Stat. 21-A, 9030E and Me. Rev. Stat. 954-A, and (2) failing to conduct a more thorough fraud investigation of the initiative campaign's signature-gathering process. The Supreme Court affirmed, holding (1) the Secretary of State did not err by declining, pursuant to sections 903-E and 954-A, to invalidate the petitions that were notarized by the notaries at issue; and (2) the Secretary of State reasonably determined that the broad assertions of fraud were insufficient grounds to launch an additional investigation of the entire campaign. View "Reed v. Secretary of State" on Justia Law

Plaintiff-appellee Natural Gas Pipeline Company of America LLC (NGPL) operated two interstate natural gas pipelines that crossed property owned by Defendant-appellant Foster OK Resources LP (Foster). NGPL brought a condemnation action seeking four separate easements to have consistent access to operate and maintain the pipelines and to clear title issues involving the pipelines. Foster challenged NGPL's exercise of eminent domain and whether NGPL's taking met the legal standard of necessity. After review, the Oklahoma Supreme Court held NGPL could not contract away its right of eminent domain and was not prevented from seeking the easements at issue to operate and maintain the pipelines. NGPL's condemnation of Foster's property was for public use and met the legal standard of necessity. Furthermore, the Court held the issue of the necessity of a survey in computing just compensation owed to Foster was premature and could not be determined at this time. View "Natural Gas Pipeline Co. v. Foster OK Resources, LP" on Justia Law

SPP, a Regional Transmission Organization (RTO), is authorized by the Commission to provide electric transmission services across a multi-state region. Pursuant to SPP's license-plate rate design, SPP is divided into different zones, and customers in each zone pay rates based on the cost of transmission facilities in that zone.The Eighth Circuit denied a petition for review brought by NPPD of FERC's approval of SPP's placement of Tri-State into Zone 17. The court held that substantial evidence supported the Commission's finding that Tri-State's placement into Zone 17 was just and reasonable. In this case, because the Commission stated plausible and articulable reasons for why the costs and benefits were comparable in this case, the court could not say that its cost-causation analysis was arbitrary and capricious. Furthermore, the Commission did not act arbitrarily and capriciously in deciding that Tri-State's placement into Zone 17 was just and reasonable. View "Nebraska Public Power District v. Federal Energy Regulatory Commission" on Justia Law

The Supreme Court dismissed Appellant's appeals from orders of the Nebraska Public Service Commission (PSC) that granted applications requesting changes to existing boundaries so that the applicants could receive advanced telecommunications services from another service provider in lieu of service from Appellant, holding that Appellant's notices of intention to appeal were not timely filed with the PSC.The PSC entered orders in both cases on July 10, 2018. Appellant subsequently submitted motions for rehearing requesting that the PSC reconsider its orders. Each motion was file stamped as having been received by the PSC on July 23. On August 21, the PSC entered orders denying the motions for rehearing. On September 13, in each case, Appellant filed a notice of intention to appeal with the PSC. The Supreme Court dismissed the appeals for lack of jurisdiction, holding (1) based on the file stamps, the motions for rehearing were not filed within ten days of the effective date of the respective orders; (2) under Neb. Rev. Stat. 75-134.02, the motions did not suspend the time for filing a notice of intention to appeal; and (3) therefore, Appellant's notices of intention to appeal were filed beyond the thirty-day time limit allowed under section 75-136(2) to perfect appeals from the July 10 orders. View "In re Application No. C-4973 of Skrdlant" on Justia Law

The Supreme Court held that the Minnesota Public Utilities Commission (MPUC) lacks the authority to require Otter Tail Power Company to amend an existing transmission cost-recovery rider (TCRR) approved under Minn. Stat. 216B.16, subd. 7b(b) to include the costs and revenues associated with two high-voltage interstate transmission lines, known as the Big Stone Access Transmission Lines (Big Stone Lines).In 2013, the MPUC approved Otter Tail's request for a TCRR for three transmission projects. In 2016, Otter Tail filed this general rate case with the MPUC seeking an annual-rate increase on its retail electricity sales to help offset company-wide investment costs and asserted that the costs and revenues associated with the Big Stone Lines should not be considered when setting the retail rates. The MPUC directed Otter Tail to amend the TCRR approved in 2013 to include the costs and revenues of the Big Stone Lines. The court of appeals reversed. The Supreme Court affirmed, holding that the MPUC does not have statutory authority to compel Otter Tail to include the Big Stone Lines in the TCRR. View "In re Application of Otter Tail Power Company for Authority to Increase Rates for Electric Service in Minnesota" on Justia Law

The DC Circuit held that FERC's rejection of Gulf South's application for incremental-plus rates was arbitrary and capricious. The court held that FERC failed to justify the disparity between how materially identical shippers will pay dramatically different rates for the use of the same facilities. Furthermore, FERC's decision violated fundamental ratemaking principles—namely, that rates should generally reflect the burdens imposed and benefits drawn by a given shipper. Accordingly, the court vacated the order denying incremental-plus rates and remanded for further proceedings. The court denied Gulf South's petition for review in all other respects. View "Gulf South Pipeline Co. v. Federal Energy Regulatory Commission" on Justia Law

In these appeals for a series of condemnation proceedings initiated by TransCanada Keystone Pipeline, LP, the Supreme Court affirmed the judgment of the district court finding that the county court plainly erred by entering a judgment on remand regarding the issue of attorney fees without holding an evidentiary hearing, holding that the county court should have considered all relevant evidence before making its determination on the motions for attorney fees.Condemnation proceedings took place in several counties through which TransCanada planned to construct an oil pipeline, including Antelope County. TransCanada ultimately voluntarily dismissed all of its condemnation actions without prejudice. This appeal concerned the motions of the condemnees in Antelope County for an award of attorney fees. The county court originally found in favor of the condemnees, but the district court reversed the award and remanded the matter for a "rehearing on the merits." Ultimately, the county court concluded that a rehearing was unnecessary and denied the condemnees their request for attorney fees. The district court reversed and remanded the matter with instructions to conduct an evidentiary hearing. The Supreme Court affirmed, holding that the district court was correct to find plain error and to remand with instructions for the county court to hold an evidentiary hearing. View "TransCanada Keystone Pipeline v. Tanderup" on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing two lawsuits brought by Black Diamond Energy of Delaware, Inc. (BDED) in an attempt to challenge the forfeiture of its bonds by the Wyoming Oil and Gas Conservation Commission, holding that the complaint in Case No. 2017-0074 was outside the scope of 30-5-113(a) and that the complaint in Case No. 2018-0011 was brought in the wrong venue.BDED, an oil and gas exploration company, secured a Wyoming oil and gas lease by posting bonds with the Commission and the Wyoming Office of State Lands and Investments. After the Commission ordered the bonds forfeited, BDED did not seek administrative review but, instead filed these lawsuits claiming that certain statutes authorized the direct action. The district court dismissed both lawsuits on the ground that BDED had failed to comply with the Wyoming Administrative Procedures Act. The Supreme Court affirmed but on different grounds, holding (1) BDED's complaint against the Commission in Case No. 2017-0074 was not properly brought pursuant to Wyo. Stat. Ann. 30-5-113(a); and (2) BDED did not bring its Wyoming Governmental Claims Act complaint in Case No. 2018-0011 in the proper venue. View "Black Diamond Energy of Delaware Inc. v. Wyoming Oil & Gas Conservation Commission" on Justia Law

BGE petitioned for review of FERC's orders arising out of its efforts to apply its "matching" principles to divergences between the timing of deductions for tax purposes and timing for purposes of allocating costs to ratepayers. BGE filed a new rate proposal seeking a net recovery of $38 million and FERC denied BGE's request. FERC concluded that BGE had breached the requirements of Order No. 144 by failing to file for recovery in its "next rate case," which, according to FERC, was BGE's 2005 rate filing. BGE countered that FERC's application of Order No. 144 was arbitrary and capricious under the Administrative Procedure Act.The DC Circuit denied the petition for review, holding that FERC's orders were not arbitrary and capricious. The court held that FERC reasonably interpreted its regulations and the settlement agreement to mean that BGE simply failed to comply with 18 C.F.R. 35.24 by its next rate case, as required by Order No. 144. The court rejected BGE's argument that, notwithstanding the requirements of Order No. 144, FERC has been more permissive with four "similarly situated" utilities and fails to explain its disparate treatment of BGE's filing. Therefore, FERC's rejection of BGE's tariff filing is a reasonable and reasonably explained application of Order No. 144. View "Baltimore Gas and Electric Co. v. Federal Energy Regulatory Commission" on Justia Law