Justia Energy, Oil & Gas Law Opinion Summaries

A natural gas pipeline company replaced three aging compressor units along its pipeline, which transports gas from Canada to the Pacific Northwest. The replacements used newer, higher-capacity compressors, but the company initially installed controls to limit their output to match the old units. After completing the replacements, the company sought federal approval to expand pipeline capacity by removing those restrictions and making other upgrades, securing long-term contracts for the added capacity with new customers. The company excluded the cost of the earlier compressor replacements from the expansion’s cost estimate, assuming those costs would remain allocated to existing customers.The Federal Energy Regulatory Commission (FERC) approved the compressor replacements under its automatic authorization regulation, finding no further environmental review was needed. Later, FERC issued a certificate for the expansion project under the Natural Gas Act, after preparing an environmental impact statement (EIS) as required by the National Environmental Policy Act (NEPA). FERC declined to treat the compressor replacements as part of the expansion for environmental or rate-setting purposes and denied the company’s request for a “predetermination” that expansion costs could be rolled into existing rates in future proceedings. Multiple parties, including two states and environmental groups, sought rehearing and then judicial review, challenging FERC’s decisions on environmental review, rate allocation, and public need.The United States Court of Appeals for the Fifth Circuit reviewed the consolidated petitions. The court held that the pipeline company had standing and its claims were ripe. On the merits, the court found FERC’s decisions were not arbitrary or capricious. FERC reasonably excluded the compressor replacements from the expansion’s environmental and rate analysis, applied its established policies for rate-setting and public need, and provided sufficient environmental review under NEPA. The court denied all petitions for review. View "Gas Transmission Northwest v. Federal Energy Regulatory Commission" on Justia Law

The case concerns the approval of a 32-mile natural gas pipeline intended to supply fuel to a new natural-gas turbine that will replace one of two coal-fired units at the Cumberland Fossil Plant in Tennessee. The Tennessee Valley Authority (TVA), a federal agency, decided to retire the coal units and replace one with a gas turbine, which is expected to reduce greenhouse gas emissions. The Federal Energy Regulatory Commission (FERC) approved the pipeline after preparing a detailed environmental impact statement. The Sierra Club and Appalachian Voices challenged this approval, arguing that FERC’s decision violated the National Environmental Policy Act (NEPA) and the Natural Gas Act.Previously, FERC issued a certificate of public convenience and necessity for the pipeline, finding that market need was established by TVA’s long-term agreement to purchase all pipeline capacity and that the project’s benefits outweighed its harms. FERC also credited the pipeline with enabling a net reduction in emissions due to the coal-to-gas transition. After the Sierra Club requested rehearing, FERC clarified that only one coal unit would be replaced but maintained its approval. The Sierra Club then petitioned the United States Court of Appeals for the District of Columbia Circuit for review.The United States Court of Appeals for the District of Columbia Circuit denied the petitions. The court held that FERC’s approval complied with NEPA and the Natural Gas Act. It found that FERC reasonably analyzed downstream emissions, properly considered the no-action alternative, and was not required to analyze the pipeline and power plant as connected actions because FERC lacked regulatory authority over power generation. The court also held that FERC’s reliance on TVA’s precedent agreement established market need and that FERC’s public interest balancing was reasonable. The court emphasized that, following recent Supreme Court precedent, judicial review of NEPA compliance is highly deferential. View "Sierra Club v. Federal Energy Regulatory Commission" on Justia Law

The case concerns a challenge to the United States Department of the Interior’s approval of the 2024–2029 National Outer Continental Shelf Oil and Gas Leasing Program, which authorizes up to three lease sales in the Gulf of Mexico region. Environmental organizations argued that the Department failed to adequately assess the risks to vulnerable coastal communities, did not properly consider the endangered Rice’s whale in its environmental sensitivity analysis, overlooked potential conflicts with other ocean uses, and did not sufficiently balance the program’s projected benefits against its environmental costs. The Department, in coordination with the Bureau of Ocean Energy Management, had developed the program through a multi-year process involving public comment and environmental review.After the Department finalized the program, the environmental groups and the American Petroleum Institute (API) each petitioned for review in the United States Court of Appeals for the District of Columbia Circuit. API later withdrew its petition but remained as an intervenor. The environmental petitioners sought to have the program remanded for further consideration, arguing violations of the Outer Continental Shelf Lands Act (OCSLA). The Department and API contested the petitioners’ standing and the merits of their claims.The United States Court of Appeals for the District of Columbia Circuit held that the environmental petitioners had associational standing to pursue their claims. On the merits, the court found that the Department of the Interior had satisfied OCSLA’s requirements by reasonably evaluating environmental justice concerns, the selection of representative species for environmental sensitivity analysis, and potential conflicts with other uses of the Gulf. The court concluded that the Department’s decision-making process was reasoned and not arbitrary or capricious. Accordingly, the court denied the petition for review, leaving the 2024–2029 leasing program in effect. View "Healthy Gulf v. Department of the Interior" on Justia Law

The Federal Energy Regulatory Commission (FERC) approved a 1,000-foot natural-gas pipeline crossing the U.S.-Mexico border. The Sierra Club and Public Citizen challenged this approval, arguing that FERC should have exercised jurisdiction over a longer 157-mile pipeline extending into Texas, considered the environmental impact of the entire pipeline, and evaluated alternatives to the border-crossing segment. They also claimed that FERC's approval of the border-crossing pipeline was arbitrary and capricious.The lower court, FERC, concluded that it did not have jurisdiction over the 157-mile Connector Pipeline because it did not cross state lines or carry interstate gas upon entering service. FERC conducted an Environmental Assessment for the 1,000-foot Border Facility, found minimal environmental impact, and deemed it in the public interest. After FERC reaffirmed its conclusions on rehearing, the petitioners sought judicial review.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that FERC reasonably declined to exercise jurisdiction over the Connector Pipeline under Section 3 of the Natural Gas Act, respecting state regulatory authority. The court also found substantial evidence supporting FERC's conclusion that the Connector Pipeline would not transport interstate gas initially, thus not subjecting it to Section 7 jurisdiction. The court rejected the petitioners' claims that FERC's approval of the Border Facility was arbitrary and capricious, noting the presumption favoring authorization under the Natural Gas Act.Regarding the National Environmental Policy Act (NEPA), the court found that FERC reasonably defined the project's purpose and need, appropriately limited its environmental review to the Border Facility, and did not need to consider the upstream Connector Pipeline's impacts. The court denied the petition, affirming FERC's decisions. View "Sierra Club v. FERC" on Justia Law

The Bureau of Land Management (BLM) approved over 4,000 permits for oil and gas wells on public land in New Mexico and Wyoming from January 2021 to August 2022. Environmental organizations challenged these permits, alleging that BLM failed to adequately consider the climate and environmental justice impacts of the wells. The district court dismissed the claims, holding that the plaintiffs lacked standing.The plaintiffs appealed, asserting standing based on affidavits from their members who live, work, and recreate near the drilling sites, claiming injuries to their health, safety, and recreational and aesthetic interests. They also claimed standing based on the wells' overall contribution to global climate change and an organizational injury from the government's failure to publicize information about climate change.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that the plaintiffs failed to sufficiently link their alleged harms to the specific agency actions they sought to reverse. The court emphasized that plaintiffs must demonstrate standing for each challenged permit by showing a concrete and particularized injury that is fairly traceable to the challenged action and likely to be redressed by a favorable ruling. The court found that the plaintiffs' generalized claims about the harms of oil and gas development were insufficient to establish standing for the specific permits at issue.The court also rejected the plaintiffs' claims of organizational standing, finding that the alleged injuries were limited to issue advocacy and did not demonstrate a concrete and demonstrable injury to the organization's activities. Consequently, the court affirmed the district court's judgment of dismissal. View "Center for Biological Diversity v. Department of the Interior" on Justia Law

Environmental groups challenged the Bureau of Land Management’s (BLM) approval of the Willow Project, an oil and gas venture in Alaska's northern Arctic. BLM approved the project in 2023, allowing ConocoPhillips Alaska, Inc. to construct oil and gas infrastructure in the National Petroleum Reserve. BLM prepared a Supplemental Environmental Impact Statement (SEIS) after a 2021 remand by the district court, which required BLM to reassess its alternatives analysis. BLM insisted on a full field development standard to avoid piecemeal development, which led to the exclusion of certain environmentally protective alternatives.The United States District Court for the District of Alaska granted summary judgment in favor of BLM, dismissing the plaintiffs' claims under the National Environmental Policy Act (NEPA), the Alaska National Interest Lands Conservation Act (ANILCA), the Naval Petroleum Reserves Production Act (Reserves Act), and the Endangered Species Act (ESA). The district court found that BLM had rectified the errors identified in its 2021 order and that the alternatives analysis satisfied NEPA, the Reserves Act, and ANILCA. The court also held that the plaintiffs had standing but had not shown that the defendants violated the ESA.The United States Court of Appeals for the Ninth Circuit affirmed in part and reversed in part the district court’s decision. The court held that BLM did not abuse its discretion in using the full field development standard to avoid the risks of piecemeal development. However, BLM’s final approval of the project was arbitrary and capricious under the Administrative Procedure Act (APA) because it did not provide a reasoned explanation for potentially deviating from the full field development standard. The court also held that BLM’s assessment of downstream emissions complied with NEPA and that BLM did not act arbitrarily in selecting mitigation measures under the Reserves Act. The court found that BLM complied with ANILCA’s procedural requirements and that the ESA consultation was not arbitrary or capricious. The court remanded the NEPA claim without vacatur, allowing BLM to provide a reasoned explanation for its decision. View "SOVEREIGN INUPIAT FOR A LIVING ARCTIC V. UNITED STATES BUREAU OF LAND MANAGEMENT" on Justia Law

The case involves the Federal Energy Regulatory Commission (FERC) extending the construction deadline for the Mountain Valley Pipeline, LLC (MVP) Southgate Project. Initially, FERC issued a certificate of public convenience and necessity for the Southgate Project in June 2020, setting a construction completion deadline of June 18, 2023. However, due to unresolved permitting issues for the Mainline, which Southgate extends from, the construction could not proceed as planned. MVP requested an extension shortly before the deadline, citing delays in Mainline permitting as the reason for not meeting the original deadline.The Commission granted MVP's extension request, finding that MVP had demonstrated good cause due to unavoidable circumstances, specifically the Mainline permitting delays. FERC also maintained that its previous assessments of market need and environmental impacts for the Southgate Project remained valid and did not require reevaluation.Eight environmental organizations petitioned for review, arguing that FERC's decision to extend the construction deadline and its refusal to revisit prior assessments were arbitrary and capricious. They contended that MVP had not made reasonable efforts to advance the Southgate Project and that the market need and environmental impact analyses were outdated.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that FERC reasonably found that MVP had satisfied the good cause standard for the extension, given the permitting and litigation delays with the Mainline. The court also upheld FERC's decision not to revisit its prior findings on market need and environmental impacts, concluding that the information presented by the petitioners did not constitute significant changes in circumstances. Consequently, the court denied the petitions for review. View "Appalachian Voices v. Federal Energy Regulatory Commission" on Justia Law

A solar energy company, Harvey Solar I, L.L.C., applied to the Ohio Power Siting Board for a certificate to construct a solar-powered electric-generation facility in Licking County, Ohio. The project faced opposition from a local citizens group, Save Hartford Twp., L.L.C., and 11 nearby residents, who raised concerns about the environmental and economic impacts of the project, including visual impacts, flooding, wildlife disruption, noise, water quality, and glare.The Ohio Power Siting Board reviewed the application and conducted an evidentiary hearing. The board staff investigated the potential impacts and recommended approval with conditions. The board ultimately granted the certificate, subject to 39 conditions, including requirements for visual screening, floodplain coordination, wildlife impact mitigation, noise control, and stormwater management.The residents appealed the board's decision to the Supreme Court of Ohio, arguing that the board failed to properly evaluate the project's adverse impacts and that Harvey Solar did not provide sufficient information as required by the board's rules. They contended that the board's decision was unlawful and unreasonable.The Supreme Court of Ohio reviewed the case and found that the board had acted within its statutory authority and had not violated any applicable laws or regulations. The court determined that the board had sufficient evidence to make the required determinations under R.C. 4906.10(A) and that the conditions imposed on the certificate were reasonable and appropriate. The court affirmed the board's order granting the certificate for the construction, operation, and maintenance of the solar facility. View "In re Application of Harvey Solar I, L.L.C." on Justia Law

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