Justia Energy, Oil & Gas Law Opinion Summaries

The case involves Oklahoma Gas and Electric Company (OG&E) and CKenergy Electric Cooperative, Inc. (CKenergy) regarding the provision of retail electric service to two facilities located in CKenergy's certified territory. OG&E began providing service to these facilities in 2017 and 2018, respectively. CKenergy filed an application with the Oklahoma Corporation Commission (the Commission) in 2019, requesting that OG&E be enjoined from continuing to serve the facilities, arguing that OG&E was in violation of the Retail Energy Supplier Certified Territory Act (RESCTA). OG&E contended that it was allowed to serve the facilities under the one megawatt exception of RESCTA.The Commission found that the connected load for initial full operation did not meet or exceed 1,000 kW at either facility and enjoined OG&E from providing service. OG&E appealed the Commission's order. The Commission also issued an order granting OG&E's request for a stay upon posting a supersedeas bond, which CKenergy and the Oklahoma Association of Electric Cooperatives (OAEC) appealed.The Supreme Court of the State of Oklahoma reviewed the case de novo. The Court held that the term "connected load for initial full operation" in the one megawatt exception of RESCTA refers to the total nameplate values of all connected electrical equipment when full operation of the facility commences. The Court found that the Commission's interpretation ignored the plain language of the statute and was not sustained by law. It was undisputed that the connected load for each facility exceeded 1,000 kW when full operation commenced. Therefore, the one megawatt exception applied, and the Commission improperly enjoined OG&E from providing service. The Court reversed the Commission's order and deemed the appeal regarding the stay moot. View "OG&E Co. v. OKLAHOMA CORPORATION COMMISSION" 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

Kimball Wind, LLC operates a wind facility in Nebraska, generating electricity transmitted on a network owned by the Western Area Power Administration (WAPA). Before operations began, WAPA determined that a substation expansion was necessary to safely transmit the facility's electricity. WAPA offered to cover part of the expansion costs, requiring Kimball Wind to pay the rest. Kimball Wind agreed under protest, believing WAPA wrongfully made it responsible for most of the costs. Kimball Wind petitioned the Federal Energy Regulatory Commission (FERC) for an order directing WAPA to reimburse its contribution to the substation expansion.The Federal Energy Regulatory Commission determined that section 211A of the Federal Power Act does not provide for the relief sought by Kimball Wind. The Commission found that Kimball Wind did not seek an order for transmission services, which is the sole form of relief provided by section 211A. Kimball Wind then filed a request for rehearing, arguing that the order was internally inconsistent and unsupported by substantial evidence. The Commission denied the request for rehearing.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court agreed with the Commission that section 211A does not authorize the Commission to issue an order directing WAPA to reimburse Kimball Wind for its contribution to the substation expansion. The court found that Kimball Wind did not seek an order for transmission services, the only type of order the Commission may issue under section 211A. Consequently, the court denied the petition for review. View "Kimball Wind, LLC v. FERC" 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

Continental Resources, Inc., an oil and gas production company, leases minerals from both the North Dakota Board of University and School Lands (Land Board) and the United States. The dispute centers on the entitlement to royalties from minerals extracted from the bed of Lake Sakakawea in North Dakota, which depends on the location of the Ordinary High Water Mark (OHWM). If North Dakota law and the state survey govern the OHWM, the Land Board is entitled to a larger percentage of the royalties; if the federal survey controls, the United States is entitled to a larger percentage.The United States removed the interpleader action to federal court and moved to dismiss based on sovereign immunity. The United States District Court for the District of North Dakota denied the motion, holding that under 28 U.S.C. § 2410(a)(5), the United States waived sovereign immunity because North Dakota law created a lien in favor of the United States upon Continental severing the minerals. The district court granted summary judgment in favor of the United States for lands retained since North Dakota's admission to the Union, applying federal law and the Corps Survey. It granted summary judgment in favor of the Land Board for lands reacquired by the United States, applying North Dakota law and the Wenck survey.The United States Court of Appeals for the Eighth Circuit reviewed the case. It affirmed the district court's denial of the motion to dismiss, agreeing that the United States had a lien on the disputed minerals under North Dakota law. The court also affirmed the summary judgment in favor of the Land Board, holding that North Dakota law governs the current location of the OHWM for lands reacquired by the United States. The court denied the United States' motion for judicial notice of additional documents. View "Continental Resources, Inc. v. United States" 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

Enbridge Energy owns and operates a pipeline that runs from Wisconsin, through Michigan, and into Canada, crossing the Straits of Mackinac under a 1953 easement with the State of Michigan. In 2020, Michigan Governor Gretchen Whitmer informed Enbridge that the State was revoking the easement, alleging that Enbridge had violated it by creating an unreasonable risk of an oil spill. Enbridge responded by filing a federal lawsuit against Governor Whitmer and the Director of the Michigan Department of Natural Resources, seeking declaratory and injunctive relief to prevent the State from interfering with the pipeline's operation.The United States District Court for the Western District of Michigan rejected the defendants' argument that Enbridge’s claims were barred by Eleventh Amendment sovereign immunity. The court held that Enbridge’s lawsuit fell within the Ex parte Young exception to sovereign immunity, which allows federal courts to hear cases seeking prospective relief against state officials for ongoing violations of federal law.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's decision. The Sixth Circuit held that Enbridge’s lawsuit was not barred by sovereign immunity because it sought prospective injunctive relief against state officials for alleged violations of federal law, fitting within the Ex parte Young doctrine. The court rejected the defendants' arguments that the suit was equivalent to a quiet title action or a request for specific performance of a state contract, finding that the relief sought would not divest the State of ownership or regulatory control over the land. Thus, the court concluded that Enbridge’s claims could proceed in federal court. View "Enbridge Energy, LP v. Whitmer" on Justia Law

Petitioners challenged an amendment to the energy facility site certificate for constructing a high-voltage electrical transmission line from Boardman, Oregon, to Hemingway, Idaho. The Energy Facility Siting Council (EFSC) had previously approved the original site certificate, which was affirmed by the court in Stop B2H Coalition v. Dept. of Energy. EFSC later approved Idaho Power’s request to amend the site certificate, expanding the site boundary and making other changes. Petitioners contested the process EFSC followed and the substance of the amendment, arguing they were entitled to a contested case proceeding and that the amendment did not comply with legal protections for watersheds and wildlife habitats.The lower court, EFSC, denied petitioners’ requests for contested case proceedings and approved the amendment. Petitioners then sought judicial review, contending that the circuit court had jurisdiction over their process challenge and that EFSC’s decisions were substantively flawed.The Supreme Court of the State of Oregon reviewed the case and held that it had jurisdiction to address the process challenge. The court found that EFSC did not err in denying the contested case proceedings, as the issues raised by petitioners were either untimely or did not present significant issues of fact or law. The court also rejected the substantive challenges, concluding that the bond requirements were adequately addressed in the original site certificate and that the expanded site boundary did not permit construction outside the micrositing corridors without further review.The Supreme Court affirmed EFSC’s final order approving the amended site certificate, holding that EFSC’s decisions were legally sound and supported by substantial evidence. View "Gilbert v. Dept. of Energy" on Justia Law

Sycamore Cross Solar LLC applied for certificates of public convenience and necessity (CPCN) to construct and operate a solar facility in Isle of Wight County and Surry County, Virginia. The project aimed to generate up to 240 megawatts of power and included transmission lines and associated facilities. The West Virginia & Appalachian Laborers’ District Council (WVALDC) participated in the case, arguing that the State Corporation Commission (Commission) failed to consider the benefits to specific groups as required by the Virginia Clean Economy Act (VCEA) and did not impose a local hiring condition.The Commission conducted an evidentiary hearing where Sycamore, WVALDC, and Commission staff presented their cases. Sycamore's witness testified about the project's economic benefits and commitment to local hiring, though no firm commitment was made. The Hearing Examiner recommended issuing the CPCNs without a local hiring condition but suggested notifying WVALDC about hiring timelines. The Commission adopted the Hearing Examiner's findings but declined the notification requirement, leading WVALDC to seek reconsideration.The Supreme Court of Virginia reviewed the case and affirmed the Commission's decision. The Court held that the VCEA only required the Commission to consider the benefits to specified groups, not make specific findings. The Commission's consideration of the evidence and its decision not to impose a hiring-related condition were within its discretion. The Court found no abuse of discretion, as the Commission reasonably concluded that the statutory requirements were met without the need for additional hiring conditions. View "WVALDC v. State Corporation Commission" on Justia Law

Hecate Energy, LLC, a developer and operator of renewable power facilities, petitioned for review of two orders by the Federal Energy Regulatory Commission (FERC). These orders approved reforms proposed by PJM Interconnection, LLC, a regional transmission grid operator, to the criteria used for processing requests to connect new electricity sources to the grid. Hecate challenged the approval of a specific aspect of these reforms: the expedited processing of interconnection requests projected to incur upgrade costs of $5 million or less. Hecate argued that this cap was arbitrary and unduly discriminatory.The Federal Energy Regulatory Commission (FERC) approved PJM's proposed reforms, including the $5 million cap, and denied Hecate's request for rehearing. FERC justified the cap by stating that projects with upgrade costs of $5 million or less were simpler and quicker to process. Hecate then petitioned the United States Court of Appeals for the District of Columbia Circuit for review, arguing that the cap was not supported by substantial evidence and that FERC failed to consider alternative eligibility rules.The United States Court of Appeals for the District of Columbia Circuit dismissed Hecate's petitions for lack of standing. The court held that Hecate's injury was not redressable because vacating FERC's approval of the $5 million cap would not likely lead to the expediting of Hecate's project. The court reasoned that PJM had multiple options to address the alleged defect without necessarily including Hecate's project in the expedited process. Therefore, Hecate failed to demonstrate that its injury would be alleviated by the court's intervention. View "Hecate Energy LLC v. FERC" on Justia Law