Justia Energy, Oil & Gas Law Opinion Summaries

The Alaska LNG Project sought authorization from the Department of Energy to export up to twenty million metric tons of liquefied natural gas (LNG) per year for thirty years. The Department initially authorized the Project to export LNG to free-trade countries in 2014 and later to non-free trade countries in 2015, subject to environmental review. In 2023, the Department issued a final order approving the Project’s export application, concluding that the approval was consistent with the public interest despite uncertainties regarding environmental impacts.The Federal Energy Regulatory Commission (FERC) had previously authorized the construction and operation of the Project’s facilities, including an 800-mile pipeline and associated infrastructure, after preparing an extensive environmental impact statement. The U.S. Court of Appeals for the District of Columbia Circuit upheld FERC’s compliance with the National Environmental Policy Act (NEPA) in Center for Biological Diversity v. FERC. The Department of Energy adopted FERC’s impact statement and issued its own supplemental environmental impact statement in response to Executive Order 13990.The United States Court of Appeals for the District of Columbia Circuit reviewed the Department of Energy’s final order. The court found that the Department had properly adopted FERC’s environmental impact statement and complied with NEPA. The court also upheld the Department’s finding of substantial uncertainty regarding the magnitude of environmental impacts, particularly greenhouse gas emissions and climate impacts, associated with the Project’s exports. The court concluded that the impacts of downstream emissions in foreign countries were not reasonably foreseeable and that the Department’s analysis was supported by substantial evidence.The court denied the petitions for review, affirming the Department of Energy’s authorization for the Alaska LNG Project to export LNG. View "Sierra Club v. DOE" on Justia Law

Tennessee Gas Pipeline Company (TGP) proposed constructing a 32-mile natural gas pipeline across several Tennessee counties, which would involve crossing numerous waterbodies. TGP applied for a § 404 permit from the United States Army Corps of Engineers (the Corps), a § 401 water quality certification from the Tennessee Department of Environment and Conservation (TDEC), and a certificate of public convenience and necessity from the Federal Energy Regulatory Commission (FERC). The Corps issued the § 404 permit, allowing TGP to discharge materials into waterbodies during construction.The Corps issued public notices and received comments on TGP’s application. TGP responded to these comments, explaining its assessment of alternative routes and crossing methods. FERC issued a Final Environmental Impact Statement, concluding that the Pipeline would not result in significant environmental impacts. TDEC issued a § 401 water quality certification, and FERC issued a certificate of public convenience and necessity. The Corps then issued the § 404 permit with special conditions, including requirements for TGP to use the least impactful trenching techniques and obtain approval before using blasting methods.The United States Court of Appeals for the Sixth Circuit reviewed the Corps' decision. The court held that the Corps did not act arbitrarily or capriciously in issuing the § 404 permit. The Corps properly assessed practicable alternatives to open-cut trenching, determined that TGP’s proposed rock-removal methods were the least environmentally damaging practicable alternatives, and correctly relied on TDEC’s § 401 water quality certification. The court also found that the Corps provided sufficient support for its conclusions regarding suspended particulates and turbidity and adequately assessed the cumulative effects of the Pipeline’s construction. The court denied the petition for review. View "Appalachian Voices v. Army Corps of Engineers" on Justia Law

Driftwood Pipeline LLC sought approval from the Federal Energy Regulatory Commission (FERC) to build two new natural gas pipelines in southwestern Louisiana. FERC granted the approval, concluding that the project would serve a market need and that its benefits outweighed its adverse environmental impacts. Healthy Gulf and Sierra Club challenged this decision, arguing that FERC failed to comply with the National Environmental Policy Act (NEPA) and the Natural Gas Act.The Federal Energy Regulatory Commission (FERC) issued a Section 7 certificate to Driftwood Pipeline LLC, determining that the project was required by public convenience and necessity. FERC also published an environmental impact statement, concluding that the project would have some adverse environmental impacts but none that were significant. Healthy Gulf and Sierra Club requested a rehearing, which was deemed denied when FERC did not act on it. They then petitioned for review, raising challenges under NEPA and the Natural Gas Act.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that FERC adequately considered the environmental effects of the project, including its impact on greenhouse gas emissions, and found that FERC's refusal to characterize the significance of these emissions was reasonable. The court also found that FERC's determination of market need was supported by substantial evidence, including precedent agreements and an independent market study. The court concluded that FERC had properly balanced the project's benefits against its adverse effects and denied the petition for review. View "Healthy Gulf v. FERC" on Justia Law

Petitioners challenged an amendment to the energy facility site certificate for constructing a high-voltage electrical transmission line from Boardman, Oregon, to Hemingway, Idaho. The Energy Facility Siting Council (EFSC) had previously approved the original site certificate, which was affirmed by the court in Stop B2H Coalition v. Dept. of Energy. EFSC later approved Idaho Power’s request to amend the site certificate, expanding the site boundary and making other changes. Petitioners contested the process EFSC followed and the substance of the amendment, arguing they were entitled to a contested case proceeding and that the amendment did not comply with legal protections for watersheds and wildlife habitats.The lower court, EFSC, denied petitioners’ requests for contested case proceedings and approved the amendment. Petitioners then sought judicial review, contending that the circuit court had jurisdiction over their process challenge and that EFSC’s decisions were substantively flawed.The Supreme Court of the State of Oregon reviewed the case and held that it had jurisdiction to address the process challenge. The court found that EFSC did not err in denying the contested case proceedings, as the issues raised by petitioners were either untimely or did not present significant issues of fact or law. The court also rejected the substantive challenges, concluding that the bond requirements were adequately addressed in the original site certificate and that the expanded site boundary did not permit construction outside the micrositing corridors without further review.The Supreme Court affirmed EFSC’s final order approving the amended site certificate, holding that EFSC’s decisions were legally sound and supported by substantial evidence. View "Gilbert v. Dept. of Energy" on Justia Law

The City of New Orleans filed a lawsuit against several pipeline operators and Entergy New Orleans LLC, alleging that their oil and gas production and transportation activities caused damage to the City's coastal zone. The City claimed that Entergy allowed its pipeline canals to widen and erode, threatening the City's storm buffer. The lawsuit was filed under Louisiana’s State and Local Coastal Resources Management Act of 1978 (SLCRMA).The defendants removed the case to federal court, arguing that Entergy, the only in-state defendant, was improperly joined to defeat diversity jurisdiction. Entergy consented to the removal and argued that it was exempt from SLCRMA’s permit requirements because its activities commenced before the statute's effective date. The City moved to remand the case to state court, but the United States District Court for the Eastern District of Louisiana denied the motion, dismissed Entergy as a party, and stayed the case pending appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's judgment. The appellate court held that Entergy was improperly joined because its activities were exempt under SLCRMA’s Historical-Use Exception, which applies to uses legally commenced before the statute's effective date. The court found no reasonable basis for the City to recover against Entergy, thus disregarding Entergy's citizenship and establishing complete diversity among the parties. The court also rejected the City's argument that it was merely a nominal party representing Louisiana, concluding that the City filed the suit on its own behalf and stood to benefit from a favorable ruling. Consequently, the appellate court affirmed the district court's denial of the City's motion to remand. View "New Orleans City v. Aspect Energy" on Justia Law

Aclara Meters LLC owned the license for the Somersworth Hydroelectric Project on the Salmon Falls River between New Hampshire and Maine from 2016 to 2023. In 2019, Aclara sought to surrender its license to the Federal Energy Regulatory Commission (FERC). After conducting an environmental assessment, FERC authorized the surrender in 2023. American Whitewater, a conservation organization, requested a rehearing, arguing that two dams from the Project should be removed as a condition of surrender. FERC denied the request, leading Whitewater to petition the United States Court of Appeals for the District of Columbia Circuit for relief, claiming that FERC acted arbitrarily and capriciously under the Federal Power Act (FPA) and the National Environmental Policy Act (NEPA).The Commission's environmental assessment concluded that approving the surrender as proposed would not significantly affect the environment, thus an Environmental Impact Statement (EIS) was unnecessary. FERC found that removing the dams was unfeasible due to the local municipalities' reliance on the reservoir for water supply and other needs. The Commission also determined that the benefits of keeping the dams outweighed the environmental and recreational benefits of their removal. FERC's decision was based on the public interest, considering the water supply, firefighting needs, and potential impacts on local infrastructure.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and denied Whitewater's petition for review. The court held that FERC's analysis was neither arbitrary nor capricious. The Commission reasonably determined that dam removal was unfeasible and appropriately assessed the public interest. The court found that FERC's decision to approve the license surrender without dam removal was supported by substantial evidence and consistent with its policies and precedents. View "American Whitewater v. FERC" on Justia Law

The case involves a dispute over the construction of a substation by Park City Wind LLC (PCW) that will connect an offshore wind farm to the New England electric grid. Jacqueline Johnson, the petitioner, lives near the proposed substation site and raised concerns about the noise impact from the substation, which includes loud step-up transformers. PCW presented expert testimony and reports to the Energy Facilities Siting Board (the board) indicating that design features would mitigate the noise impact, keeping it within the allowable increase of ten A-weighted decibels (dBA) set by the Department of Environmental Protection (DEP).The board approved PCW's petition to construct the substation, subject to several conditions, including preconstruction and postconstruction reviews to ensure the noise levels at Johnson's home would not exceed an eight dBA increase. Johnson was allowed to participate fully in the administrative process, including discovery, briefing, and cross-examination of PCW's experts. The board required PCW to confirm that the predicted noise levels would not be exceeded once the equipment specifications were known and to implement additional noise mitigation measures if necessary.The Supreme Judicial Court of Massachusetts reviewed the case. Johnson argued that the board's decision was not supported by substantial evidence because it relied on aggressive sound level design specifications for yet-to-be-manufactured equipment. The court concluded that Johnson failed to meet the heavy burden required to overturn the board's decision, which was supported by substantial evidence, including expert testimony and industry-standard sound modeling. The court also found that the board's conditional approval, requiring preconstruction and postconstruction compliance filings, was lawful and within the board's statutory authority. The court affirmed the board's decision. View "Johnson v. Energy Facilities Siting Board" on Justia Law

The State of Indiana approved a plan to retire a coal-fired facility and replace it with wind and solar energy sources, supplemented by two new natural gas turbines to ensure grid reliability. The Federal Energy Regulatory Commission (FERC) approved a natural gas pipeline to serve these turbines. The Citizens Action Coalition of Indiana challenged FERC’s approval, arguing that FERC’s environmental analysis was unreasonable and inconsistent with the National Environmental Policy Act (NEPA) and the Natural Gas Act (NGA). The core claim was that FERC should have analyzed non-gas alternatives before approving the pipeline.The Indiana Utility Regulatory Commission initially denied CenterPoint Energy’s proposal for an 850-megawatt natural gas unit due to inadequate consideration of alternatives. CenterPoint then modified its plan to include wind generation and applied to build two smaller gas-fired turbines, which the Indiana Commission approved. CenterPoint contracted with Texas Gas Transmission for a 24-mile pipeline to supply natural gas to the new units. Citizens Action intervened in the FERC proceeding, raising environmental concerns. FERC prepared an environmental impact statement and approved the pipeline. Citizens Action’s request for rehearing was denied by operation of law, leading to the current petition for review.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that FERC acted lawfully and reasonably in its environmental analysis and public convenience and necessity determination. FERC was not required to consider non-gas alternatives outside its jurisdiction and properly identified the project’s purpose as supporting CenterPoint’s new natural gas units. The court also found that FERC’s use of emissions percentages and the absence of a significance label were reasonable and consistent with NEPA. The petition for review was denied. View "Citizens Action Coalition of Indiana, Inc. v. FERC" on Justia Law

NorthWestern Corporation and the Montana Department of Environmental Quality (DEQ) appealed a District Court order vacating an air quality permit granted to NorthWestern for a natural-gas-fueled power plant near Laurel, Montana. The District Court found DEQ's analysis under the Montana Environmental Policy Act (MEPA) inadequate regarding the project's lighting impacts and greenhouse gas emissions.The Thirteenth Judicial District Court vacated the permit, ruling that DEQ's noise analysis was not arbitrary or capricious but failed to take a "hard look" at the facility's lighting impacts and greenhouse gas emissions. The court also found that DEQ did not comply with MEPA requirements in its environmental assessment (EA) and remanded the EA to DEQ for further analysis.The Supreme Court of the State of Montana reviewed the case. It affirmed the District Court's ruling that DEQ's noise analysis was adequate but agreed that DEQ failed to properly analyze the lighting impacts. The Supreme Court also held that DEQ must analyze greenhouse gas emissions within Montana as part of its MEPA review, despite the absence of specific regulatory standards for greenhouse gases under the Clean Air Act of Montana.However, the Supreme Court reversed the District Court's vacatur of the permit, citing the need for specific findings under § 75-1-201(6)(c)(ii), MCA, before granting such equitable relief. The case was remanded to DEQ for further MEPA analysis in accordance with the Supreme Court's opinion, with the permit reinstated pending this additional review. View "MEIC v. DEQ" on Justia Law

The case involves the approval process for a large-scale commercial offshore wind energy facility located on the Outer Continental Shelf, fourteen miles south of Martha's Vineyard and Nantucket. The plaintiffs, consisting of commercial fishing entities and a nonprofit organization, challenged the federal government's approval of the project, citing violations of the Administrative Procedure Act (APA), the National Environmental Policy Act (NEPA), the Endangered Species Act (ESA), the Marine Mammal Protection Act (MMPA), the Clean Water Act (CWA), and the Outer Continental Shelf Lands Act (OCSLA).The United States District Court for the District of Massachusetts granted summary judgment in favor of the defendants, which included various federal departments and agencies, as well as the business entity responsible for the wind project. The court found that the plaintiffs' ESA claims were non-justiciable due to lack of standing and mootness, as the initial biological opinion had been superseded by a new one. The court also ruled that the plaintiffs were outside the zone of interests protected by the NEPA and the MMPA, and that the Alliance had failed to show that the Corps' issuance of the CWA Section 404 permit was arbitrary or capricious.The United States Court of Appeals for the First Circuit reviewed the district court's rulings de novo. The appellate court affirmed the district court's judgments, agreeing that the plaintiffs lacked standing for their ESA claims and that the claims were moot. The court also upheld the district court's zone-of-interests rulings regarding the NEPA and MMPA claims. Additionally, the court found that the Corps' decision to issue the CWA permit was not arbitrary or capricious and that the BOEM's approval of the project under the OCSLA was lawful. The appellate court concluded that the plaintiffs' arguments did not demonstrate that the BOEM had acted arbitrarily or capriciously in approving the project. View "Seafreeze Shoreside, Inc. v. Department of the Interior" on Justia Law