Justia Energy, Oil & Gas Law Opinion Summaries

Ohio Nuclear-Free Network (Ohio Nuclear) and Beyond Nuclear petitioned for review of a decision of the Nuclear Regulatory Commission (NRC, Commission), issuing an amended materials license to American Centrifuge Operating, LLC (American Centrifuge). The amended license authorizes American Centrifuge to produce high-assay, low-enriched uranium (HALEU) at a facility near Piketon, Ohio pursuant to a demonstration program with the U.S. Department of Energy (DOE). Petitioners contended that the NRC issued the amended license without first preparing an Environmental Impact Statement (EIS), which they assert was required by the National Environmental Policy Act (NEPA).   The DC Circuit dismissed their petition. The court concluded that because Petitioners failed to properly intervene in the manner required by 42 U.S.C. Section 2339 and the NRC’s AEA regulations, they were not parties to the licensing amendment proceeding they asked the DC Circuit to review. Accordingly, under the Hobbs Act, 28 U.S.C. Section 2344, the court dismissed their petition for review for lack of jurisdiction View "Ohio Nuclear-Free Network v. NRC" on Justia Law

The Supreme Judicial Court affirmed the order of the Energy Facilities Siting Board approving a project change petition filed by NSTAR Electric Company, doing business as Eversource Energy, that would move the boundaries of an electric substation 190 feet from the location that had previously been approved, holding that the Board did not err in approving the project change.Specifically, the Supreme Judicial Court held (1) the Board did not err in determining that GreenRoots, Inc. did not satisfy the applicable legal standard for the reopening of a completed adjudicatory proceeding; (2) the Board complied with the statutory and regulatory requirements regarding public participation and environmental justice; and (3) the Board's conclusion that Eversource reasonably addressed risks from future sea level rise under the circumstances was supported by substantial evidence. View "GreenRoots, Inc. v. Energy Facilities Siting Bd." on Justia Law

The issue this appeal presented for the Tenth Circuit's review centered on the denial of tax benefits relating to petitioner Preston Olsen's purchase of solar lenses. The benefits were only available if the taxpayer had a profit motive for the purchases. Olsen bought the lenses in 2009, 2011, 2012, 2013, and 2014, through a program created by Neldon Johnson. Under the program, Johnson would use the lenses in a new system to generate electricity by heating a liquid to generate steam and drive a turbine. Johnson never finished the system; he had completed the lenses on only one tower and hadn’t decided whether those lenses would heat water, oil, or molten salt. Johnson funded the program through investors like Olsen who bought lenses from Johnson’s companies and leased the lenses to another of Johnson’s companies. Once the system began producing revenue, Johnson's company would pay Olsen’s company $150 per lens per year. But the system never generated any revenue. From 2009 to 2014, Olsen annually claimed depreciation deductions and solar energy credits on the lenses. These claims allowed the Olsens to pay little or no federal income taxes. "So the Olsens came out ahead even though they had never obtained any money from the leases." The tax court disallowed the benefits in part because it found Petitioner lacked a profit motive. Finding no reversible error in the tax court's decision, the Tenth Circuit affirmed. View "Olsen, et al. v. CIR" on Justia Law

In 2018, John Webb Pace, Jeannette Pace, and John Gregory Pace (the Paces) filed a complaint against Tiger Production Company, LLC, CCore Energy Management Company, LLC, Robert Marsh Nippes, and Harry Walters (collectively, “Tiger Production”). Each defendant filed a motion to dismiss the Paces’ claims for failure to exhaust their administrative remedies before the Mississippi Oil and Gas Board (MSOGB). After hearing oral arguments, the circuit court denied the motions to dismiss, determining that all of the Paces’ claims were based in common law and could not be remedied by the MSOGB. Tiger Production timely sought interlocutory appeal, which the Mississippi Supreme Court granted. After review, the Supreme Court found the circuit court was correct. The Court therefore affirmed the circuit court’s judgment and remanded the case to the circuit court for further proceedings. View "Tiger Production Company, LLC, et al. v. Pace" on Justia Law

The Federal Energy Regulatory Commission (FERC)  brought an enforcement action against BP, alleging the company capitalized on the hurricane-induced chaos in commodities markets by devising a scheme to manipulate the market for natural gas. BP sought judicial review of FERC’s order finding that BP engaged in market manipulation and imposing a $20 million civil penalty.   The Fifth Circuit explained that because FERC predicated its penalty assessment on its erroneous position that it had jurisdiction over all (and not just some) of BP’s transactions, the court must remand for a reassessment of the penalty in the light of the court’s jurisdictional holding. Thus, the court granted in part and denied in part BP’s petition for review and remanded to the agency for reassessment of the penalty.   The court explained that it has rejected FERC’s expansive assertion that it has jurisdiction over any manipulative trade affecting the price of an NGA transaction. The court, however, reaffirmed the Commission’s authority over transactions directly involving natural gas in interstate commerce under the NGA. The court further determined that there was substantial evidence to support FERC’s finding that BP manipulated the market for natural gas. The court found that FERC’s reasoning in imposing a penalty was not arbitrary and capricious, though the court concluded that FERC’s reliance on an erroneous understanding of its own jurisdiction necessitates remand for recalculation of the penalty. Finally, the court held that neither separation of functions nor statute of limitations issues justify overturning the Commission’s order. View "BP America v. FERC" on Justia Law

The Supreme Court affirmed the order of the district court denying Cascade County's request for attorney fees and costs, interest, and unjust enrichment damages, holding that the district court did not err in determining that the provisions of Mont. Code Ann. 75-11-307(2) precluded the County's request for attorney fees, costs, interests, and unjust enrichment damages.This appeal involved a long-running dispute between the County and the Montana Petroleum Tank Release Compensation Board for remediation costs associated with petroleum contamination. The County held that four petroleum releases did not qualify for reimbursement from the Montana Petroleum Tank Release Compensation Fund. The district court reversed. The Supreme Court reversed in part. In district court on remand, the County filed a motion to the Board to pay "eligible costs." The district court denied the request. The Supreme Court affirmed, holding that the County's claims for attorney fees, costs, interest, and unjust enrichment damages were statutorily prohibited. View "Cascade Co. v. Petroleum Tank Release Compensation Bd." on Justia Law

The Tenth Circuit found the EPA’s own written decision indicated the EPA concluded that the statutory and regulatory definitions of “small refinery” did not provide specific “guidance []or limits” on how the terms “refinery” and “average aggregate daily crude oil throughput” should have been “evaluated.” Accordingly, the EPA proceeded as though it “ha[d] discretion to choose what factors and information it w[ould] consider in this evaluation.” The EPA’s decisions to deny an extension of a temporary exemption to “small refineries” from complying with the Clean Air Act’s Renewable Fuel Standard Program were reversed and remanded. "That does not mean that the EPA could not again arrive at the same conclusion. But, to do so, the EPA would need to (a) either consider and apply its own regulatory definition of “facility” to the circumstances presented here or explain why that regulatory definition is inapplicable, (b) provide clear guidance on its integration analysis, to the extent it continues to rely on that factor, and (c) omit any consideration of Suncor’s management structure or public statements unless it can demonstrate that those factors are somehow consistent with, and have a reasonable connection to, the statutory and regulatory definitions of the term “refinery.” View "Suncor Energy v. EPA" on Justia Law

The State of North Dakota, ex rel. the North Dakota Board of University and School Lands, and the Office of the Commissioner of University and School Lands, a/k/a the North Dakota Department of Trust Lands appealed a judgment dismissing its claim against Newfield Exploration Company relating to the underpayment of gas royalties. The North Dakota Supreme Court found that the district court concluded the State did not establish a legal obligation owed by Newfield. However, the State pled N.D.C.C. § 47-16-39.1 in its counterclaim, which the court recognized at trial. Because the State satisfied both the pleading and the proof requirements of N.D.C.C. § 47-16-39.1, the Supreme Court held the district court erred in concluding the State did not prove Newfield owed it a legal obligation to pay additional royalties. Rather, as the well operator, Newfield owed the State an obligation under N.D.C.C. § 47-16-39.1 to pay royalties according to the State’s leases. The court failed to recognize Newfield’s legal obligations as a well operator under N.D.C.C. § 47-16-39.1. The Supreme Court concluded the district court erred in dismissing the State's counterclaim; therefore, judgment was reversed and the matter remanded for findings related to the State's damages and Newfield's affirmative defenses. View "Newfield Exploration Company, et al. v. North Dakota, et al." on Justia Law

The Supreme Court affirmed in part and reversed in part the decision of the Wyoming Board of Equalization (Board) concluding that WPX Energy Rocky Mountain, LLC was entitled to deduct some of its "reservation fees," holding that the Board erred in interpreting the plain language of Wyo. Stat. Ann. 39-14-203(b)(vi)(C) in its decision.At issue on appeal was whether and to what extent WPX was entitled to deduct "reservation fees" under the "netback" severance tax valuation method, section(vi)(C), for natural gas production years 2013-2015. The Board concluded that WPX was entitled to deduct some of its reservation fees. The Supreme Court reversed in part, holding (1) the statute allows WPX to fully deduct its pipeline reservation fees for months when some but not the full reserve capacity of gas was transported on that pipeline; (2) the statute does not allow WPX to deduct its Bison Pipeline reservation fees for months when it shipped no gas on the pipeline; and (3) the Board's conclusion that WPX cannot deduct any portion of its Bison Pipeline reservation fees it used to recoup pipeline construction costs was contrary to the plain language of the statute and the Bison agreement. View "Wyo. Department of Revenue v. WPX Energy Rocky Mountain, LLC" on Justia Law

Nine Illinois energy consumers sued their electricity provider, ComEd, and its parent, Exelon, on behalf of themselves and those similarly situated for damages under the Racketeer Influenced and Corrupt Organizations Act (RICO) alleging injury from increased electricity rates. These rates increased, they allege, because ComEd bribed former Illinois Speaker of the House Michael Madigan to shepherd three bills through the state’s legislature: the Energy Infrastructure and Modernization Act of 2011 (EIMA); 2013 amendments to that legislation; and the Future Energy Jobs Act of 2016. Although Illinois law still required public utilities to file rates with the Illinois Commerce Commission (ICC), EIMA implemented statutorily prescribed, performance-based rate increases that limited ICC discretion in reviewing rates and authorized at least $2.6 billion in ComEd spending on smart meters and smart grid infrastructure, costs that were required to be passed on to customers. In 2016, FEJA provided $2.35 billion in funding for nuclear power plants operated, paid for through a new fee for utility customers, and allowed ComEd to charge ratepayers for all energy efficiency programs and for some expenses relating to employee incentive compensation, pensions, and other post-employment benefits.The Seventh Circuit affirmed the dismissal of the suit. Paying a state’s required filed utility rate is not a cognizable injury for a RICO damages claim. View "Brooks v. Commonwealth Edison Co." on Justia Law