Justia Energy, Oil & Gas Law Opinion Summaries

This matter arose from a 2006 class action suit instituted by Steve Crooks and Era Lee Crooks (“Class Plaintiffs”) against the State through the Louisiana Department of Natural Resources (“LDNR”) concerning the ownership of riverbanks in the Catahoula Basin and subsequent mineral royalty payments. The Louisiana Supreme Court granted review in this case to address whether mandamus may lie to compel the State to pay a judgment rendered against it for mineral royalty payments. Finding that the payment of a judgment concerning the return of mineral royalties received by the State required legislative appropriation, an act that is discretionary in nature, the appellate court erred in issuing the writ of mandamus. View "Crooks, et al. v. Louisiana, Dept. of Nat. Resources" on Justia Law

The petitions for review sought reversal of a refund order by the Federal Energy Regulatory Commission (FERC or Commission) upon finding a discrepancy in petitioner Ameren Illinois’s self-reported operational costs. Instead of reporting construction-related materials and supplies costs on line 5 of page 227 of Form 1, Ameren Illinois reported these costs on line 8 with the result that it over-collected for transmission costs. The Commission found that this reporting error was contrary to Ameren Illinois’s filed rate, which, prior to June 1, 2020, did not allow it to recover costs recorded to line 5 of page 227.   The DC Circuit affirmed the Order, denying review and reconsideration. The court explained that the Commission’s decision that Ameren lacked the discretion to report construction-related costs on line 8 was not unreasonable, arbitrary and capricious, or otherwise contrary to law. The court reasoned that although the Commission “may not retroactively alter a filed rate to compensate for prior over- or underpayments,” Exxon Mobil Corp. v. FERC, 571 F.3d 1208, 1211 (D.C. Cir. 2009), that is not what occurred here. All the Commission has done is require Ameren Illinois to correct a reporting error that resulted in overcharging customers for expenses not allowed under Ameren Illinois’s then-registered formula rate. Its contrary arguments fail to demonstrate that the refund order was unjust or contrary to the law. View "Ameren Illinois Company v. FERC" on Justia Law

The Louisiana Public Service Commission (“LPSC”) petitioned the Fifth Circuit for a writ of mandamus compelling the Federal Energy Regulatory Commission (“FERC”) to resolve several of its complaints before the agency related to a ratemaking dispute with System Energy Resources, Inc. (“SERI”), operator of the Grand Gulf Nuclear Station.   The Fifth Circuit concluded that FERC has yet to provide the court with sufficient explanation for its delay despite ongoing irreparable harm to consumers. Accordingly, the court ordered FERC to provide the court—within 21 days—with a meaningful explanation for the length of time the Commission takes for final action in Section 206 complaint proceedings, including those at issue here. View "In re: LA Pub Svc Comm" on Justia Law

Plaintiffs Citizens for Constitutional Integrity and Southwest Advocates, Inc. appealed the rejection of their challenges to the constitutionality of the Congressional Review Act (CRA), and Senate Rule XXII, the so-called Cloture Rule, which required the votes of three-fifths of the Senate to halt debate. The Stream Protection Rule, 81 Fed. Reg. 93,066 (Dec. 20, 2016), heightened the requirements for regulatory approval of mining-permit applications. The Rule was promulgated by the Department of the Interior’s Office of Surface Mining Reclamation and Enforcement (the Office) in the waning days of the Obama Administration. Within a month of the Stream Protection Rule taking effect on January 19, 2017, both Houses of Congress had passed a joint resolution disapproving the Rule pursuant to the CRA, and President Trump had signed the joint resolution into law. According to Plaintiffs, the repeal of the Rule enabled the approval of a 950.55-acre expansion of the King II Coal Mine (the Mine), located in La Plata County, Colorado, and owned by GCC Energy. Plaintiffs filed suit in the United States District Court for the District of Colorado against the federal government and several high-ranking Department of the Interior officials in their official capacities (collectively, Defendants) seeking: (1) a declaration that the CRA and the Cloture Rule were unconstitutional and that the Stream Protection Rule was therefore valid and enforceable; (2) vacation of the approval of the King II Mine permit modification and an injunction against expanded mining activities authorized by the modification; and (3) attorney fees. The Tenth Circuit Court of Appeals rejected plaintiffs' challenges to the CRA and held that they lacked standing to challenge the Cloture Rule. View "Citizens for Constitutional, et al. v. United States, et al." on Justia Law

The original proceedings involve efforts by the Public Utilities Commission (PUC or the Commission) to discover whether the political activities of Southern California Gas Company (SCG) are funded by SCG’s shareholders, which is permissible, or ratepayers, which is not. The Commission propounded several discovery requests (called “Data Requests”) on SCG, and when SCG failed fully to comply, moved to compel further responses that ultimately resulted in an order to comply or face substantial penalties. SCG seeks a writ of mandate directing the Commission to rescind its order on the ground that the discovery requests infringe on SCG’s First Amendment rights.   The Second Appellate District granted the petition. The court held that SCG has shown that disclosure of the requested information will impact its First Amendment rights, and the Commission failed to show that its interest in determining whether SCG’s political efforts are impermissibly funded outweighs that impact. The court explained that the Commission argues that sometimes SCG misclassifies expenditures, and has at times moved expenditures from ratepayer to shareholder accounts. But this just shows that a less invasive discovery process is working, and the PAO can confirm that no funds have been misclassified to ratepayer accounts by reviewing above-the-line accounts. Further, because the court will vacate Resolution ALJ-391 insofar as it compels disclosure of shareholder expenditures, no basis for sanctions exists. View "So. Cal. Gas Co. v. P.U.C." on Justia Law

A real estate development company PEM Entities LLC (PEM), asserts a North Carolina county violated the Federal Constitution and state law by imposing new rules for getting water and sewage services. The district court dismissed the complaint, concluding the company lacked standing to bring its takings and due process claims, its equal protection claim was too insubstantial to raise a federal question, and the court should not exercise jurisdiction over the state law claims once the federal claims were dismissed.   The Fourth Circuit affirmed. The court explained that without a constitutionally protected property interest, PEM’s takings and due process claims fail as a matter of law. Accordingly, the court affirmed the district court’s dismissal of PEM’s takings and due process claims because they fail to state a claim on which relief can be granted. Further, the court concluded the district court was right to dismiss PEM’s equal protection claim but should have done so for failure to state a claim rather than lack of jurisdiction. Thu, having concluded the district court correctly dismissed all of PEM’s federal claims, the court saw no abuse of discretion in the district court’s decision not to exercise supplemental jurisdiction over the state law claims. View "PEM Entities LLC v. County of Franklin" on Justia Law

Petitioners Shrimpers and Fishermen of the RGV, Sierra Club, and Save RGV from LNG (collectively, “Petitioners”) challenge the issuance of a Clean Water Act (“CWA”) permit by the U.S. Army Corps of Engineers (the “Corps”). Petitioners allege that the Corps’ permit issuance violated the CWA and its implementing regulations.   The Fifth Circuit denied the petition for review, holding that the Corps approved the least environmentally damaging practicable alternative presented before it during the permitting process and did not act arbitrarily in its evaluation of pipeline construction impacts and mitigation efforts. The court explained Petitioners’ first set of arguments centers on the Corps’ estimation that restoration will occur within one year. They state that the Corps did not consider the full construction period when quantifying the duration of impacts, which they allege is improper. However, they supply no evidence that the construction period must be, or even that it typically is, included when assessing whether impacts are temporary.   Further, the Corps’ analysis also comports with the EIS, which estimates that herbaceous vegetation will regenerate “within 1 to 3 years.” The EIS estimation necessarily includes the finding that vegetation may revegetate in one year, as the Corps concluded. Finally, the EPA feedback Petitioners relied upon does not consider the approved compensatory mitigation plan or the special conditions of the permit because the comments are from 2015 and 2018— well before the current permit (and even the original permit) was approved. The Corps considered this feedback and aligned its ultimate approach with the EPA’s recommendations. View "Shrimpers v. United States Army Corps" on Justia Law

The Supreme Court reversed the decision of the court of appeals reversing the decision of the Indiana Utility Regulatory Commission approving Southern Indiana Gas and Electric Company's (Vectren) petition for approval of its new instantaneous netting method determining the amount of credit its customers receive for their excess distributed generation of electricity, holding that there was no error.Acting within its expertise and authority, the Commission approved Vectren's petition seeking approval of a tariff (Rider EDG) rate for the procurement of excess distributed generation. The Commission approved the Rider EDG, finding that the instantaneous netting method was consistent with Ind. Code 8-1-40-5. The court of appeals reversed. The Supreme Court reversed, holding that the Commission properly held that Vectren's instantaneous netting method was not contrary to law and satisfied the requirements in Ind. Code Ann. 8-1-40-5. View "Ind. Office of Utility Consumer Counselor v. Southern Indiana Gas & Electric Co." on Justia Law

The City of Industry sued Cordoba Corporation, among others, after uncovering allegedly fraudulent billings for a solar energy development. Cordoba filed a cross-complaint, but the trial court granted the City’s special motion to strike it as a strategic lawsuit against public participation (Code Civ. Proc., Section 425.16), or anti-SLAPP motion.   The Second Appellate District affirmed the order. The court explained that Cordoba does not deny filing a lawsuit is protected activity. Instead, it argues its three causes of action arise not from the City’s petitioning activity, but from the City’s noncompliance with its contractual obligations. The court wrote that this is a distinction without a difference. Further, the court explained that the court properly struck Cordoba’s breach of contract claim because the conduct Cordoba attacked was protected petitioning activity. Moreover, the court held that Cordoba cannot satisfy its burden because each of its three causes of action fails to state a valid claim. View "Cordoba Corp. v. City of Industry" on Justia Law

The Supreme Court affirmed the judgment of the court of appeals concluding that use and development and alienation restrictions in a deed applied to both the surface and subsurface of the properties at issue in this case and that the village of Barnesville violated the restrictions when it transferred oil and gas rights to another entity without obtaining written permission from Ohio Public Works Commission (OPWC), holding that there was no error.The village received two grants to finance the purchase of two properties for conservation projects. The OPWC brought this action claiming that the village violated transfer and use restrictions in the deeds for the properties at issue by transferring oil and gas rights to another entity, which leased those rights to Gulfport Energy Corporation, without obtaining the OPWC's permission. The court of appeals granted judgment in favor of OPWC. The Supreme Court affirmed, holding that the court of appeals correctly determined that the village violated the use and development restrictions when it transferred oil and gas rights without OPWC's written consent. View "Ohio Public Works Commission v. Village of Barnesville" on Justia Law