Justia Energy, Oil & Gas Law Opinion Summaries

Petitioners, non-profit environmental protection organizations, filed petitions for judicial review challenging sixteen Department of the Interior (DOI) plan approvals, issued between March 29 and May 20, 2010, under the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1331-1356a. The court concluded that: (1) petitioners' OCSLA-based challenges were justiciable, except for four, which have become moot; (2) the DOI's approval of the exploratory and development plans were subject to judicial review by the court under OCSLA, 43 U.S.C. 1349(c)(2); (3) petitioners' failure to participate in the administrative proceedings related to the DOI's approval of the plans as required by section 1349(c)(3) did not oust the court's jurisdiction because that participation requirement was a non-jurisdictional administrative exhaustion rule; but, (4) petitioners have not shown sufficient justification for excusing them from that exhaustion requirement in this case. Accordingly, except for four of petitioners' petitions for judicial review that were dismissed as moot, petitioners' petitions for judicial review were dismissed because of their failure to participate in the administrative proceedings. View "Gulf Restoration Network, Inc., et al. v. Salazar, et al.; Ctr for Biological Diversity v. Salazar, et al." on Justia Law

Petitioner Town of Seabrook appealed an order of the New Hampshire Department of Environmental Services (DES) which granted Respondent NextEra Energy Seabrook, LLC (NextEra), several tax exemptions under RSA 72:12-a (Supp. 2011). Upon review of the record, the Supreme Court found that the record supported DES' decisions except for one: the Court found no evidence in the record to support an increase in a percentage allocation allowed under the statute. Accordingly, the Court partly affirmed, partly reversed the DES' decision, and remanded the case for further proceedings. View "Appeal of Town of Seabrook " on Justia Law

Appellant John Madden appealed the Public Service Board's order granting a certificate of public good for Appellee Cross Pollination, Inc.'s planned construction of a solar energy farm in the Town of New Haven. Appellant claimed that the Board erred in applying 30 V.S.A. 248, which regulates the construction of electric generation facilities, and should not have issued the certificate because the solar farm will have an "undue adverse effect" on the aesthetics of the natural landscape as defined by 30 V.S.A. 248(b)(5). Appellant's issue on appeal was the Board's use of the "Quechee test" so named from the Supreme Court's decision in "In re Quechee Lakes Corp.," 580 A.2d 957 (1990)): that the Board erred in applying the Quechee test and should have concluded that under 30 V.S.A. 248(b)(5) the project would have an "undue adverse effect" on the aesthetics of the land, and as a result, no certificate of public good should have issued. Upon review, the Supreme Court affirmed the Board's findings in this case, and held that its decision was based on a correct reading of the law and is supported by its findings. View "In re Petition of Cross Pollination for a Certificate of Public Good" on Justia Law

The Supreme Court addressed the question of what level of participation in an administrative rule-making proceeding gives a participant the right to defend that new rule in an appellate court during a subsequent appeal. Each of the four petitions for writs of superintending control stemmed from an appeal of a decision made by one of two administrative agencies, the New Mexico Environmental Improvement Board (EIB) or the New Mexico Water Quality Control Commission (WQCC). Those petitions arose from appeals of administrative rule makings: one appeal challenging rules adopted by EIB and the other challenging rules adopted by WQCC. The Court of Appeals denied appellee status to all four Petitioners, and the Petitioners requested that the Supreme Court issue writs of superintending control to overturn those rulings. The Court consolidated the four petitions and, after hearing oral arguments, issued the writs requested by three of the Petitioners while rejecting the fourth: "[b]eyond the party initiating the proceeding, [the Court] need only decide in this case whether participants who have presented technical testimony are 'parties' to an appeal as contemplated under [New Mexico] rules. [The Court concluded] that they are." [Petitioners] were not just participants who happened to be recognized as parties by EIB and WQCC. Rather, each participated in the rule-making proceedings in a legally significant manner. Each was required to file advance notice of participation, naming their witnesses and the witnesses' qualifications, and each was required to satisfy other prerequisites to their testimony. In addition, Petitioners contributed the kind of evidence that directly informed the inquiries made by EIB and WQCC in making their final decisions. Thus, the Court concluded that the requirements imposed upon Petitioners afforded them a right to defend their positions as parties on appeal. View "New Energy Economy Inc. v. Vanzi" on Justia Law

Noble Energy and other lessees sued in the Court of Federal Claims, alleging that application of the Coastal Zone Management Act, 16 U.S.C. 1451-1464, suspension requests constituted a material breach of their lease agreements to drill for, develop, and produce oil and natural gas on submerged lands off the coast of California. The Court of Federal Claims agreed; on appeal the Federal Circuit affirmed. One year after the Federal Circuit's decision in the breach-of-contract litigation, the Minerals Management Service (MMS), sent a letter to Noble ordering it to plug and abandon Well 320-2 permanently. The district court ruled that the common law doctrine of discharge did not relieve Noble of the regulatory obligation to plug its well permanently, an obligation that the lease did not itself create. Resolution of the dispute depended on what the plugging regulations meant. The court held that it was up to MMS's successor to interpret its regulation in the first instance and to determine whether they apply in situations like Noble's. If they do, the agency must explain why. Therefore, the court vacated the judgment and sent the case back to the district court with instructions to vacate Interior's order and to remand to the Secretary for further proceedings. View "Noble Energy, Inc. v. Salazar, et al." on Justia Law

During World War II, the U.S. contracted with oil companies for the production of aviation fuel, which resulted in production of hazardous waste. The waste was dumped at the California McColl site. Several decades later, the oil companies were held liable for cleanup costs under the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. 9601, and sought reimbursement from the government based on the contracts. The district court entered summary judgment on liability, finding that the contracts contained open ended indemnification agreements and encompassed costs for CERLCA cleanup, and awarded $87,344,345.70. The trial judge subsequently discovered that his wife had inherited 97.59 shares of stock in a parent to two of the oil companies. The judge ultimately vacated his summary judgment rulings; severed two companies from the suit and directed the clerk to reassign their claims to a different judge; reinstated his prior decisions with respect to two remaining companies; and entered judgment against the government ($68,849,505). The Federal Circuit vacated and remanded for reassignment to another judge. The judge was required to recuse himself under 28 U.S.C. 455(b)(4) and the error was not harmless.View "Shell Oil Co. v. United States" on Justia Law

This case concerned three rivers which flow through Montana and then beyond its borders. At issue was whether discrete, identifiable segments of these rivers in Montana were nonnavigable, as federal law defined that concept for purposes of determining whether the State acquired title to the riverbeds underlying those segments, when the State entered the Union in 1989. Montana contended that the rivers must be found navigable at the disputed locations. The Court held that the Montana Supreme Court's ruling that Montana owned and could charge for use of the riverbeds at issue was based on an infirm legal understanding of the Court's rules of navigability for title under the equal-footing doctrine. The Montana Supreme Court erred in its treatment of the question of river segments and portage and erred as a matter of law in relying on evidence of present-day primarily recreational use of the Madison River. Because this analysis was sufficient to require reversal, the Court declined to decide whether the State Supreme Court also erred as to the burden of proof regarding navigability. Montana's suggestion that denying the State title to the disputed riverbeds would undermine the public trust doctrine underscored its misapprehension of the equal-footing and public trust doctrines. Finally, the reliance by petitioner and its predecessors in title on the State's long failure to assert title to the riverbeds was some evidence supporting the conclusion that the river segments over those beds were nonnavigable for purposes of the equal-footing doctrine. Accordingly, the judgment was reversed. View "PPL Montana, LLC v. Montana" on Justia Law

This case arose out of plaintiffs' second challenge to the sufficiency of the DOE's Environmental Assessment (EA) of a prospective "biosafety level-3" (BSL-3) facility at the Lawrence Livermore National Laboratory (LLNL). On appeal, plaintiffs petitioned the court to require the DOE to prepare an Environment Impact Statement (EIS), or in the alternative, to revise its EA, in light of the allegations set forth in its original complaint, to determine whether an EIS was required. The court held that the DOE took the requisite "hard look" at the environmental impact of an intentional terrorist attack in the manner required by the National Environment Policy Act (NEPA), 42 U.S.C. 4321, et seq., and San Luis Obispo Mothers for Peace v. Nuclear Regulatory Commission. The court further held that the district court did not abuse its discretion in denying plaintiffs' motion to supplement the record. Accordingly, the judgment was affirmed. View "Tri-Valley Cares, et al. v. U.S. Dept. of Energy, et al." on Justia Law

In 1983, Congress enacted the Nuclear Waste Policy Act, 42 U.S.C. 10101–10270, to provide for government collection and disposal of spent nuclear fuel and high-level radioactive waste. The NWPA authorized the Department of Energy to contract for disposal. In return for payment of fees into the Nuclear Waste Fund, the Standard Contract provided that the DOE would begin to dispose of SNF and HLW not later than January 31, 1998. Because collection and disposal did not begin, courts held that the DOE had breached the Standard Contract with the nuclear energy industry. The trial court found breach of plaintiff's contract, but granted summary judgment in favor of the government regarding the implied covenant of good faith and fair dealing and set damages for the breach at $10,014,114 plus the cost of borrowed funds for financing construction of a dry fuel storage project. On reconsideration, the trial court reduced damages to $9,735,634 and denied the cost of borrowed funds. The Federal Circuit affirmed with respect to borrowed fund, but and reversed denial of overhead costs. View "System Fuels, Inc. v. United States" on Justia Law

In this action, the trial court granted summary judgment against a locality, holding it liable to landowners under the State Water Control Law, Va. Code Ann. 62.1-44.2 through -44.34:28, in particular Code 62.1-44.34:18(C) of the Oil Discharge Law, for the contamination of groundwater by leachate and landfill gas. The Supreme Court reversed the trial court's judgment, holding that the trial court erred in awarding summary judgment to the landowners and finding the locality liable under the Oil Discharge Law, as the Oil Discharge Law does not apply to the passive, gradual seepage of leachate and landfill gas into groundwater. View "Campbell County v. Royal" on Justia Law