Justia Energy, Oil & Gas Law Opinion Summaries

The Clean Air Act New Source Review program forbids construction of new pollution sources without a permit, 42 U.S.C. 7475. Operators of major pollutant-emitting sources who plan construction must make a preconstruction projection of the increase in emissions following construction, to determine whether the project constitutes a “major modification,” requiring a permit. DTE planned on replacing 2,000 square feet of tubing, the economizer, and large sections of reheater piping; installing a new nine-ton device that provides voltage that creates the electromagnetic field needed for the rotor to produce electricity; and refurbishing boiler feedwater pumps at its power plant. The project required 83 days and $65 million. DTE performed required calculations and projected an emissions increase of 3,701 tons per year of sulfur dioxide and 4,096 tons per year of nitrogen oxides. Under the regulations, an increase of 40 tons per year of either substance is significant. DTE determined that the increase fell under the demand growth exclusion. The Michigan Department of Environmental Quality took no action and construction began. The U.S. EPA filed notice of violation. The district court granted DTE summary judgment. The Sixth Circuit reversed. While the regulations allow operators to undertake projects without having EPA second-guess their projections, EPA is not categorically prevented from challenging blatant violations until after modifications are made. View "United States v. DTE Energy Co." on Justia Law

This case stemmed from Chevron's involvement in litigation over the alleged environmental contamination of oil fields in Ecuador. Ecuador sought discovery from John Connor and GSI Environmental, his company, for use in a foreign arbitration against Chevron. During the course of extended litigation with Ecuador, Chevron, an intervenor in the district court, benefited repeatedly by arguing against Ecuador and others that the arbitration was a "foreign or international tribunal." Because Chevron's previous positions were inconsistent with its current argument, judicial estoppel was appropriate to make discovery under 28 U.S.C. 1782 available for Ecuador. Accordingly, the court reversed and remanded for determination of the scope of discovery. View "Republic of Ecuador, et al v. Connor, et al" on Justia Law

This case stemmed from Congress's amendment of the Clean Air Act, 42 U.S.C. 7545(o), to establish a renewable fuel standard (RFS) program. API objected to the EPA's 2012 projection for cellulosic biofuel and to its refusal to reduce the applicable advanced biofuels volume for 2012. The court rejected API's argument that the EPA failed to justify its determination not to reduce the applicable advanced biofuels volume for 2012. However, because the EPA's methodology for making its cellulosic biofuel projection did not take neutral aim at accuracy, the court held that it was an unreasonable exercise of agency discretion. Accordingly, the court vacated the 2012 RFS rule and remanded for further proceedings. View "American Petroleum Institute v. EPA" on Justia Law

This case stemmed from the multi-district litigation involving the Deepwater Horizon drilling rig oil spill. Plaintiff appealed from the district court's dismissal of its action brought under the citizen-suit provisions of the Clean Water Act (CWA), 33 U.S.C. 1365(a)(1), the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9659(a), and the Emergency Planning and Community Right-to-Know Act (EPCRA), 42 U.S.C. 11046(a). The court concluded, with one exception, that the district court did not err by dismissing plaintiff's claims as moot because the Macondo well had been capped and sealed; on the present state of the record, plaintiff had standing to assert its claim for relief based on defendants' alleged failure to comply with the reporting requirements of EPCRA; and the EPCRA claim was not moot. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "In Re: Deepwater Horizon" on Justia Law

NextEra Energy Seabrook, LLC, which operated a nuclear power plant in Seabrook, New Hampshire, applied to renew its operating license. NextEra submitted a required environmental report that concluded that offshore wind electric generation was not a reasonable alternative to the extended licensing of Seabrook. Several environmental groups (collectively, Petitioners) questioned and sought a hearing on NextEra's environmental report. The Atomic Safety and Licensing Board admitted the contention, but the Nuclear Regulatory Commission (NRC) denied the admission of the contention, which resulted in Petitioners not being entitled to have a hearing on the merits about their contention that generation of electricity from offshore wind was a reasonable alternative source of baseload energy to the relicensing of Seabrook. The First Circuit Court of Appeals denied Petitioners' petition for review, holding (1) the NRC did not misapply case law interpreting the National Environmental Policy Act in formulating its contention-admissibility standard; and (2) NRC's conclusion that the contention was inadmissible was not arbitrary or capricious, and there was no basis in law to set it aside. View "Beyond Nuclear v. U.S. Nuclear Regulatory Comm'n" on Justia Law

In this appeal, Appalachian Power Company (APCO) sought rate adjustment clause recovery of $33.3 million in environmental compliance costs that the State Corporation Commission denied. The Supreme Court reversed in part, affirmed in part, and remanded, holding (1) APCO was entitled to a rate adjustment clause for recovery of actual costs it directly incurred for environmental compliance in 2009 and 2010 but did not recover through its base rates, and the portion of the Commission's decision denying recovery of environmental compliance costs on the basis that those costs were connected with projects included in APCO's base rates which APCO had the opportunity to recover was reversed; and (2) the portion of the Commission's decision denying APCO recovery of environmental compliance costs alleged to be embedded in the capacity equalization charges APCO paid to its affiliates in 2009 and 2010 was affirmed. Remanded. View "Appalachian Power Co. v. State Corp. Comm'n" on Justia Law

In consolidated appeals, the Lowell Mountains Group, Inc. (LMG), and the Towns of Albany and Craftsbury, challenged several Public Service Board orders related to the construction of a wind-electric-generation facility and associated facilities on Lowell Mountain in Lowell, Vermont. In May 2010, petitioners Green Mountain Power Corporation (GMP), Vermont Electric Cooperative, Inc. (VEC), and Vermont Electric Power Company, Inc. and Vermont Transco LLC (VELCO) requested a certificate of public good (CPG) to construct a wind-electric-generation facility on Lowell Mountain. On May 31, 2011, following testimony, site visits, a public hearing, and hearings, the Board issued a final order granting a CPG subject to forty-five conditions. Appellants and several other parties moved for reconsideration. On July 12, 2011, the Board modified its final order in certain respects. The Towns and LMG appealed that final order with modifications. The parties also raised compliance issues with the final order that the Board ultimately overruled. Upon review of the Board's orders, the Supreme Court found no abuse of discretion, and deferred to the Board's decisions with regard to the final order. Accordingly, the Court affirmed the Board. View "In re Green Mountain Power Corp." on Justia Law

These consolidated petitions for review challenged a contract between the BPA and one of its long-time customers, Alcoa. BPA's preference customers and others filed this petition for review, requesting that the court hold that the contract was unlawful because it was inconsistent with the agency's statutory mandate to act in accordance with sound business principles. Petitioners claimed, among other things, that instead of entering into a contract to sell power to Alcoa at the statutorily required Industrial Firm power (IP) rate, BPA should sell to other buyers at the market rate. The court denied the petitions for review insofar as they pertained to the Initial Period. Because the potential for BPA and Alcoa to enter into the Second Period of the contract was no longer before the court, the court dismissed those portions of the petitions. Finally, the court held that because BPA relied on a categorical exclusion to the National Environmental Policy Act's (NEPA), 42 U.S.C. 4321-4347, requirements, declining to complete an Environmental Impact Statement was not arbitrary and capricious. Accordingly, the court denied petitioner's NEPA claim. View "Alcoa Inc. v. BPA, et al" on Justia Law

Kivalina appealed the district court's dismissal of their action for damages against Energy Producers. Kivalina alleged that massive greenhouse gas emissions emitted by the Energy Producers have resulted in global warming, which, in turn, has severely eroded the land where the City of Kivalina sits and threatens it with imminent destruction. Kivalina sought damages under a federal common law claim of public nuisance. At issue was whether the Clean Air Act, 42 U.S.C. 7401 et seq., and the EPA action that the Act authorized, displaced Kivalina's claims. The court concluded that the Supreme Court has held that federal common law addressing domestic greenhouse gas emissions has been displaced by Congressional action. That determination displaced federal common law public nuisance actions seeking damages, as well as those actions seeking injunctive relief. The civil conspiracy claim fell within the substantive claim. Therefore, the court affirmed the judgment of the district court. View "Native Village of Kivalina, et al v. Exxonmobile Corp., et al" on Justia Law

Defendant-Appellant Tim DeChristopher entered a Bureau of Land Management (BLM) oil and gas lease auction in Salt Lake City, Utah, by representing he was a bidder. His purpose was to disrupt the auction and call attention to the potential environmental harms of drilling on the leases. He proceeded to drive up the auction prices and ultimately won almost $1.8 million in bids, for which he was unable to pay. A jury convicted Defendant of interfering with the provisions of Chapter 3A of the Federal Onshore Oil and Gas Leasing Reform Act, and making a false statement or representation. He appealed, raising eight separate issues related to his conviction. Upon review of each, the Tenth Circuit determined they had no merit and affirmed Defendant's conviction and sentence. View "United States v. DeChristopher" on Justia Law