Justia Energy, Oil & Gas Law Opinion Summaries

Venture Global CP2 LNG and Venture Global CP Express sought authorization from the Federal Energy Regulatory Commission (FERC) to construct and operate a liquefied natural gas (LNG) export terminal and an 85-mile pipeline in Louisiana. FERC’s review included extensive environmental analysis in compliance with the National Environmental Policy Act (NEPA), resulting in an Environmental Impact Statement (EIS) and a Supplemental EIS (SEIS). Both assessments concluded that, with recommended mitigation measures, the project’s environmental impacts, including those on air quality and the commercial fishing industry, would not be significant.Individuals and advocacy groups challenged FERC’s authorization, raising eleven alleged errors under the Natural Gas Act (NGA) and NEPA. After FERC’s initial order in 2024, the challengers sought rehearing. FERC partially granted rehearing to address concerns raised by recent D.C. Circuit decisions and directed additional environmental review, which led to the SEIS. The SEIS found no exceedances of relevant air quality standards for the terminal and compressor station. FERC reaffirmed its authorization in 2025, and subsequent rehearing requests were denied. The challengers 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 held that FERC’s interpretation and application of the NGA was lawful and not arbitrary, emphasizing the presumption in favor of terminal authorization under Section 3, absent an affirmative showing of inconsistency with the public interest. The court found FERC’s NEPA analysis reasonable, deferring to FERC’s use of established air quality standards and its reliance on expert agency data. The court also upheld FERC’s treatment of cumulative impacts and harm to commercial fisheries as sufficiently addressed and explained. The petitions for review were denied in full. View "For a Better Bayou v. FERC" on Justia Law

A company operates a pipeline transporting oil and natural gas liquids between the United States and Canada. A portion of this pipeline crosses twelve miles of land within a Native American reservation in northern Wisconsin. In 2013, the company’s rights-of-way over certain parcels of reservation land expired. During the intervening years, the tribal band acquired ownership interests in a number of these parcels. The company continued to operate the pipeline without securing the tribal band’s renewed consent for the necessary easements. Following a breakdown in negotiations, the tribal band filed suit, alleging trespass and public nuisance. The band also pointed to the risk of a pipeline rupture near a river bend where erosion threatened pipeline safety.The United States District Court for the Western District of Wisconsin granted summary judgment for the tribal band on its trespass and unjust enrichment claims, and against the company on its breach-of-contract counterclaim. After a bench trial, the district court awarded the band restitution for past trespass, ordered future disgorgement of profits, and issued an injunction requiring the company to cease operations across the affected parcels within three years and to implement a monitoring and shutdown protocol to abate the alleged nuisance. Both parties appealed; the district court stayed the shutdown portion of the injunction while the appeal was pending.The United States Court of Appeals for the Seventh Circuit affirmed the finding that the company was trespassing on the parcels at issue and that restitution and injunctive relief are appropriate remedies. However, the court vacated the district court’s restitution calculation and the three-year shutdown deadline, remanding for a new determination of remedies that accounts for the public interest and ongoing pipeline reroute efforts. The court also held that federal statutory law displaced the band’s federal common law nuisance claim and vacated the related injunction. View "Bad River Band of the Lake Superior Tribe of Chippewa v Enbridge Energy Company, Inc." on Justia Law

A company with a lease in the Brentwood Oil Field, Contra Costa County, proposed to convert an inactive oil and gas extraction well into a water injection well for disposing of treated wastewater, a byproduct of oil and gas drilling. The well in question had been built in 1963, used for extraction until 1984, and then plugged. The company currently disposed of wastewater by trucking it offsite but sought to inject it underground instead. Regulatory agencies, including CalGEM, the State Water Board, and the Regional Water Board, expressed concerns about potential contamination of local clean water sources due to possible migration of wastewater. After additional technical analysis and the imposition of specific project conditions, these concerns were resolved, and CalGEM approved the project, issuing a notice of exemption (NOE) under the California Environmental Quality Act (CEQA), relying on the “class 1” categorical exemption for minor alterations of existing facilities with negligible expansion of use.The Contra Costa County Superior Court found substantial evidence did not support CalGEM’s determination that the project fell within the class 1 exemption, concluding that converting an oil and gas well into a water injection well did not constitute negligible or no expansion of former use. CalGEM agreed to comply with the writ. On appeal, the First Appellate District, Division Five, reversed, holding that the exemption applied because the environmental risks of the new use were negligible.The Supreme Court of California reviewed the case and reversed the Court of Appeal’s judgment. The Supreme Court held that the phrase “negligible or no expansion of existing or former use” in the class 1 exemption refers to the nature or degree of a structure or facility’s use, not to the risk of environmental harm caused by such a change. The court remanded the case for reconsideration under this proper framework and did not reach the additional question regarding project conditions as mitigation. View "Sunflower Alliance v. Dept. of Conservation" on Justia Law

The dispute centers on land in Calcasieu Parish, Louisiana, owned by a public entity, where oil and gas exploration occurred for decades under a mineral lease originally granted in 1943. The plaintiff acquired several tracts of this land between 1968 and 1987, with prior owners reserving mineral rights. The mineral lease was assigned multiple times before terminating in 2020. The plaintiff alleged that the defendants, or their predecessors, caused environmental damage to the property through oil and gas operations predating the plaintiff’s ownership, and sought damages under both tort and contract theories.Defendants filed exceptions of no right of action, arguing that under the “subsequent purchaser rule” articulated in Eagle Pipe and Supply, Inc. v. Amerada Hess Corp., a property owner cannot recover for damage inflicted before their purchase unless assigned the prior owner’s rights. The trial court denied these exceptions. On appeal, the Louisiana Court of Appeal, Third Circuit, reversed in part. It dismissed all claims against one defendant (Honeywell) for preacquisition damage, and limited claims against the other (Texas Pacific) to an 87-day period when both the plaintiff and Texas Pacific’s predecessor simultaneously held interests in one tract.The Supreme Court of Louisiana granted review. It extended the subsequent purchaser rule from Eagle Pipe to cases involving mineral leases, holding that a purchaser of property, absent an assignment or subrogation, has no right of action for preacquisition property damage caused by mineral lessees. However, the court recognized an exception for damages occurring during the period when the plaintiff owned the property and the defendant held lease rights. Additionally, the court held that a current surface owner may enforce the prudent operator standard under Mineral Code article 122 for end-of-lease obligations that become due upon termination, but not for historic operational damage. The judgment was affirmed in part, reversed in part, and remanded. View "VINTON HARBOR & TERMINAL DISTRICT VS. REUNION ENERGY COMPANY" on Justia Law

Oak Run Solar Project, L.L.C. sought approval from the Ohio Power Siting Board to construct a solar-powered electric generation facility in Madison County, Ohio. The proposed facility would occupy approximately 4,400 acres and include an 800 MW solar array, a 300 MW battery energy storage system, and two transmission lines. Oak Run entered agreements with landowners for the project site and committed to an agrivoltaics program, maintaining agricultural productivity alongside solar generation. Local governments and other parties intervened, raising concerns about environmental, visual, water, plant, wildlife, and safety impacts. The board’s staff issued a report, and a hearing was held, resulting in project approval subject to conditions for landscape screening and safety.Prior to reaching the Supreme Court of Ohio, the Ohio Power Siting Board considered Oak Run’s application and allowed intervenors, including several township boards and the county board of commissioners, to participate. After a hearing and review, the board granted Oak Run’s certificate for construction, finding the statutory requirements satisfied and imposing conditions related to visual screening and emergency response. The local governments filed an application for rehearing, which was denied. They then appealed to the Supreme Court of Ohio, arguing the board failed to obtain necessary information, especially regarding visual impacts and environmental effects.The Supreme Court of Ohio reviewed the case, applying a standard of review for “unlawful or unreasonable” board orders. The court held that Oak Run failed to provide required photographic simulations or sketches of substations, as mandated by administrative rules, thereby depriving the board of necessary information to assess visual impacts. The court affirmed the board’s orders in part, reversed in part regarding the visual-impact information, and remanded the matter to the board for further consideration of the project’s visual effects. View "In re Application of Oak Run Solar Project, L.L.C." on Justia Law

Several oil refineries with average daily crude oil throughput below 75,000 barrels in 2024 applied to the Environmental Protection Agency (EPA) in 2025 for exemptions from their obligations under the Renewable Fuel Standard (RFS) program for the 2024 compliance year. The RFS program, established under the Clean Air Act, requires refineries to blend renewable fuels into transportation fuels. The Act provides for a “small refinery” exemption for facilities that do not exceed the 75,000-barrel threshold in a calendar year. The petitioning refineries did not seek exemptions for 2023 and based their applications solely on their 2024 throughput.After the refineries submitted their applications, the EPA informed them that, under its 2014 regulation, eligibility required a refinery to meet the “small refinery” definition both for "the most recent full calendar year prior to seeking an extension" and for "the year or years for which an exemption is sought." The EPA interpreted this to mean petitioners needed to satisfy the throughput limit in both 2023 and 2024. Since the refineries exceeded the threshold in 2023, the EPA denied the exemption requests. The refineries then sought review in the United States Court of Appeals for the District of Columbia Circuit.The D.C. Circuit held that the EPA’s interpretation of its 2014 regulation was contrary to the regulation’s plain text. The court found that, because the applications were filed in 2025 for the 2024 compliance year, both the “most recent full calendar year prior to seeking an extension” and “the year for which an exemption is sought” referred to 2024. Since the petitioners met the threshold in 2024, they were eligible under the regulation. The court vacated the EPA’s denial orders and remanded for further proceedings. View "Alon Refining Krotz Springs, Inc. v. EPA" on Justia Law

South Branch Solar, L.L.C. sought approval to build a 130-megawatt solar-powered electric generation facility in Hancock County, Ohio, on approximately 700 acres of agricultural land. The project included solar panels, related equipment, and infrastructure. Local government officials and residents had varied reactions, with some supporting the facility for its economic and environmental benefits and others expressing concerns about impacts on land use, aesthetics, property values, wildlife, and local drainage systems. Travis Bohn, who lives near the project site, opposed the project and intervened in the proceedings.The Ohio Power Siting Board reviewed South Branch’s application, which included environmental studies and mitigation plans. After a public hearing and extensive opportunity for public input, the board staff recommended approval subject to 50 conditions. A joint stipulation was agreed to by South Branch, the board staff, the county commissioners, and the Ohio Farm Bureau Federation, but not by Bohn. Following an adjudicatory hearing, the Board issued an order granting the certificate. Bohn unsuccessfully sought rehearing, arguing that the Board misapplied statutory criteria, failed to require adequate wildlife and flood analysis, and improperly weighed local opposition and economic impacts.The Supreme Court of Ohio reviewed the Board’s order using a standard that allows reversal only if the order was unlawful or unreasonable. The court held that the Board’s determinations under R.C. 4906.10(A)(2), (A)(3), and (A)(6)—concerning environmental impact, minimum adverse impact, and public interest—were supported by sufficient probative evidence and complied with statutory and regulatory requirements. The court found no reversible error in the Board’s approval of South Branch’s application and affirmed the order granting the certificate. View "In re Application of S. Branch Solar, L.L.C." on Justia Law

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