Justia Energy, Oil & Gas Law Opinion Summaries

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

Columbia Gas of Ohio, Inc. applied to the Ohio Power Siting Board for approval to construct a 3.7-mile natural-gas-distribution pipeline in Maumee, Ohio. The application was submitted under an accelerated review process for pipelines less than five miles long. Yorktown Management, L.L.C., which owns property adjacent to the proposed pipeline route, raised concerns about the safety and environmental impact of the pipeline, particularly its proximity to their commercial office building.The Ohio Power Siting Board approved Columbia's application under the accelerated review process, finding that the project met the necessary criteria. Yorktown filed a motion to intervene and later a motion to suspend the review, arguing that the board had not adequately addressed their safety concerns. The board denied Yorktown's motion to suspend and subsequently denied their application for rehearing, leading Yorktown to appeal the decision.The Supreme Court of Ohio reviewed the case and affirmed the board's decision. The court found that Columbia's application did not require a 50-foot-wide permanent easement along the entire pipeline route, as Yorktown claimed. The court also determined that Yorktown had waived its right to challenge the board's rejection of testimony from a different pipeline project. Additionally, the court held that the board did not err in refusing to suspend its review of the accelerated application, as Yorktown failed to demonstrate good cause for suspension. The court concluded that the board did not improperly defer to Columbia and had appropriately conditioned the approval on compliance with relevant safety regulations. View "In re Letter of Notification Application of Columbia Gas of Ohio, Inc. for the Ford Street Pipeline Project" on Justia Law

Holtec International applied to the Nuclear Regulatory Commission (NRC) for a license to construct and operate a spent nuclear fuel storage facility in New Mexico. The NRC denied multiple requests for intervention and a hearing from various petitioners, including Beyond Nuclear, Sierra Club, and Fasken Land and Minerals. These petitioners argued that the NRC acted unreasonably and contrary to law in denying their requests.The Atomic Safety and Licensing Board (Board) found the petitioners' contentions inadmissible and denied their petitions to intervene. The NRC affirmed the Board’s decisions. Beyond Nuclear, Environmental Petitioners (including Sierra Club), and Fasken each petitioned for review of the orders denying intervention. The case was held in abeyance until the NRC issued Holtec a license, after which the case was removed from abeyance for review by the United States Court of Appeals for the District of Columbia Circuit.The United States Court of Appeals for the District of Columbia Circuit reviewed the petitions and found that the NRC reasonably declined to admit the petitioners' factual contentions and complied with statutory and regulatory requirements. The court held that Beyond Nuclear did not raise a genuine dispute of law or fact regarding the NRC’s authority to consider Holtec’s application. The court also found that Environmental Petitioners failed to demonstrate any genuine disputes of material fact or law in their contentions related to statutory authority, alleged misrepresentations by Holtec, and compliance with the National Environmental Policy Act (NEPA). Additionally, the court determined that Fasken’s late-filed contentions were procedurally defective, untimely, and immaterial.The court denied all the petitions for review, affirming the NRC’s decisions to deny the requests for intervention. View "Beyond Nuclear, Inc. v. NRC" on Justia Law

In 2021, petitioners challenged the Federal Energy Regulatory Commission’s (FERC) authorization of two liquefied natural gas (LNG) export terminals in Cameron County, Texas, and a related pipeline. The court partially granted the petitions and remanded the case to FERC without vacating the orders. On remand, FERC reauthorized the projects, prompting petitioners to challenge the reauthorization, arguing non-compliance with the National Environmental Policy Act (NEPA) and the Natural Gas Act (NGA).Previously, the U.S. Court of Appeals for the District of Columbia Circuit found FERC’s environmental justice analysis inadequate and required FERC to either justify its chosen analysis radius or use a different one. FERC was also directed to reconsider its public interest determinations under the NGA. On remand, FERC expanded its environmental justice analysis but did not issue a supplemental Environmental Impact Statement (EIS), which petitioners argued was necessary. FERC also did not consider a new carbon capture and sequestration (CCS) proposal as part of its environmental review.The U.S. Court of Appeals for the District of Columbia Circuit found FERC’s failure to issue a supplemental EIS for its updated environmental justice analysis arbitrary and capricious, as the new analysis provided a significantly different environmental picture. The court also held that FERC should have considered the CCS proposal as a connected action or a reasonable alternative. Additionally, the court found FERC’s rejection of air quality data from a nearby monitor arbitrary and capricious. The court vacated FERC’s reauthorization orders and remanded the case for further proceedings, requiring FERC to issue a supplemental EIS and consider the CCS proposal. View "City of Port Isabel v. FERC" on Justia Law

The Federal Energy Regulatory Commission (FERC) issued a certificate to Transcontinental Gas Pipe Line Company, LLC (Transco) to construct and operate a pipeline through several states, including New Jersey. The New Jersey Conservation Foundation and other petitioners argued that FERC overlooked significant environmental consequences and failed to consider evidence of a lack of market need for the pipeline. They also contended that FERC ignored New Jersey state laws mandating reductions in natural gas consumption.The lower court, FERC, approved the pipeline project, finding that the public benefits outweighed the adverse impacts. FERC based its decision on precedent agreements with local gas distribution companies (LDCs) and concluded that the project satisfied the Natural Gas Act (NGA). Petitioners requested a rehearing, arguing that FERC's decision was arbitrary and capricious. FERC denied the rehearing request, maintaining its position on market need and environmental impact assessments.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court found that FERC acted arbitrarily by not adequately explaining its decision regarding the significance of greenhouse gas emissions and failing to discuss possible mitigation measures. The court also held that FERC did not properly consider evidence showing that current capacity was sufficient to meet New Jersey's natural gas demands and that the precedent agreements with LDCs did not necessarily indicate market need. Additionally, the court found that FERC misinterpreted New Jersey's mandatory energy efficiency laws as unenforceable.The court vacated FERC's orders and remanded the case for further action, requiring FERC to reassess the market need and environmental impacts of the pipeline project. View "New Jersey Conservation Foundation v. FERC" on Justia Law