Justia Energy, Oil & Gas Law Opinion Summaries

Allco Renewable Energy Limited appealed a Public Utility Commission (PUC) order which found that Allco had begun “site preparation for . . . an electric generation facility” without first obtaining a certificate of public good (CPG) in violation of 30 V.S.A. 248(a)(2)(A). The PUC enjoined Allco from any further site preparation unless certain criteria were satisfied and explained that, following another hearing, it would determine a civil penalty for Allco’s violation under 30 V.S.A. 30(a). On appeal, Allco challenged the PUC’s injunction order. Because there was not yet a final appealable order, the Vermont Supreme Court dismissed this appeal for lack of jurisdiction. View "In re Allco Renewable Energy Limited et al." on Justia Law

In consolidated appeals, the issue presented for the Pennsylvania Supreme Court's review centered on the Commonwealth Court’s holding that, to be held liable for damages under Pennsylvania’s inverse condemnation statute, an entity had to be "clothed with the power of eminent domain" to the property at issue. In 2009, Appellee, UGI Storage Company filed an application with the Federal Energy Regulatory Commission (the “Commission” or “FERC”), seeking a certificate of public convenience and necessity to enable it to acquire and operate certain natural gas facilities. Appellee wished to acquire and operate underground natural gas storage facilities, which the company referred to as the Meeker storage field. Appellee also sought to include within the certificated facilities a 2,980-acre proposed "buffer zone." FERC ultimately granted the application for Appellee to acquire and assume the operation of the Meeker storage field, but denied Appellee’s request to certificate the buffer zone. Appellants petitioned for the appointment of a board of viewers to assess damages for an alleged de facto condemnation of their property, alleging that though their properties had been excluded by FERC from the certificated buffer zone, they interpreted Appellee’s response to the Commission’s order as signaling its intention to apply for additional certifications to obtain property rights relative to the entire buffer zone. The common pleas court initially found that a de facto taking had occurred and appointed a board of viewers to assess damages. Appellee lodged preliminary objections asserting Appellants’ petition was insufficient to support a de facto taking claim. The Supreme Court reversed the Commonwealth Court: "we do not presently discern a constitutional requirement that a quasi-public entity alleged to have invoked governmental power to deprive landowners of the use and enjoyment of their property for a public purpose must be invested with a power of eminent domain in order to be held to account for a de facto condemnation. ... a public or quasi-public entity need not possess a property-specific power of eminent domain in order to implicate inverse condemnation principles." The case was remanded for the Commonwealth Court to address Appellants’ challenge to the common pleas court’s alternative disposition (based upon the landowners’ purported off-the-record waiver of any entitlement to an evidentiary hearing), which had been obviated by the intermediate court’s initial remand decision and that court’s ensuing affirmance of the re-dismissal of Appellants’ petitions. View "Albrecht, et al. v. UGI Storage Co. et al." on Justia Law

The issue presented for the South Carolina Supreme Court in this case involved two consolidated cross-appeals from the Public Service Commission's (PSC) determinations regarding ratemaking applications filed by Duke Energy Carolinas, LLC (DEC) and Duke Energy Progress, LLC (DEP) (collectively, Duke). Each Duke entity owned one coal-fired power plant in South Carolina and seven coal-fired power plants in North Carolina, for a total of sixteen affected plants. In their ratemaking applications, the two Duke entities sought recovery for expenses related to their plants in both states, with those costs shared proportionately between their North and South Carolina customers. The PSC allowed in part and disallowed in part the requested expenses. On appeal, Duke contended the PSC erred in disallowing: (1) environmental compliance costs associated with North Carolina law; (2) litigation costs incurred by Duke in defending itself from various lawsuits; and (3) carrying costs on specified deferred accounts. In the cross-appeal, the South Carolina Energy Users Committee (SCEUC) contended the PSC erred in allowing DEC recovery of costs associated with a now-abandoned nuclear project in Cherokee County because of the South Carolina General Assembly's repeal of the Base Load Review Act (BLRA). After review, the Supreme Court affirmed the PSC's decisions in full because its decisions were supported by substantial evidence in the record, were not arbitrary or capricious, and were not controlled by an error of law. View "Duke Energy Carolinas v. SC Office of Regulatory Staff" on Justia Law

In 2019 the Public Service Commission of Wisconsin issued a permit authorizing two transmission companies and an electric cooperative to build and operate a $500 million, 100-mile power line. Environmental groups filed lawsuits in both federal and state courts, alleging that two of the three commissioners had disqualifying conflicts of interest and should have recused themselves.The Seventh Circuit affirmed the denial of the commissioners’ motion to dismiss based on sovereign immunity. The commissioners were sued in their official capacities, so sovereign immunity blocks this suit in its entirety unless it falls within the Ex parte Young exception, which authorizes a federal suit against state officials for the purpose of obtaining prospective relief against an ongoing violation of federal law. The environmental groups seek an order enjoining the permit’s enforcement, prospective relief; they contend that the violation is ongoing as long as the permit remains in force and effect and the commissioners have the power to enforce, modify, or rescind it. Ex parte Young applies.The court, sua sponte, remanded with instructions to stay the case pending resolution of the state proceedings. Both cases raise materially identical due-process recusal claims. The case implicates serious state interests regarding the operation of Wisconsin administrative law and judicial review. Litigating the same questions in both court systems is duplicative and wasteful; comity and the sound administration of judicial resources warrant abstention. View "Driftless Area Land Conservancy v. Valcq" on Justia Law

Ordinances banning “land uses in support of” new oil and gas wells and “land uses in support of” wastewater injection in unincorporated areas of Monterey County were enacted as part of Measure Z, an initiative sponsored by PMC and passed by Monterey County voters.The trial court upheld, in part, a challenge to Measure Z by oil companies and other mineral rights holders. The court of appeal affirmed. Components of Measure Z are preempted by state laws. Public Resources Code section 3106 explicitly provides that the State of California’s oil and gas supervisor has the authority to decide whether to permit an oil and gas drilling operation to drill a new well or to utilize wastewater injection in its operations. Those operational aspects of oil drilling operations are committed by section 3106 to the state’s discretion and local regulation of these aspects would conflict with section 3106. View "Chevron U.S.A., Inc. v. County of Monterey" on Justia Law

The Supreme Court affirmed the order of the Ohio Power Siting Board granting Duke Energy Ohio, Inc. a certificate of environmental compatibility and public need to construct, operate, and maintain a natural-gas pipeline, holding that the Board's decision was not manifestly against the weight of the evidence and was not so clearly unsupported by the record as to show a mistake or willful disregard of duty.Specifically, the Supreme Court held (1) assuming without deciding that the Board misapplied its filing requirements, the error was harmless; (2) the Board did not err in determining that Duke's proposal met the conditions of Ohio Rev. Code 4906.10(A)(1); (3) the Board properly accounted for the interest of safety in evaluating Duke's proposal; (4) the Board did not err by not requiring Duke to evaluate the pipeline's impact against the City of Blue Ash's most recent comprehensive plan; (5) the Board did not err in evaluating the pipeline's estimated tax benefits; and (6) the Board did not deprive Blue Ash of due process of law. View "In re Application of Duke Energy Ohio, Inc." on Justia Law

The Supreme Court reversed the decision of the Public Utilities Commission of Ohio (PUCO) allowing a gas company to charge its customers higher rates, holding that the PUCO erred by approving the rate increase.At issue was whether Suburban Natural Gas Company's customers must pay for a 4.9-mile extension of the company's pipeline. The PUCO determined that the pipeline extension met the "used-and-useful" test as of a specified date and approved the rate increase. See Ohio Rev. Code 4909.15(A)(1). The Supreme Court reversed, holding (1) the PUCO looked beyond whether the entire 4.9-mile extension was used and useful on the applicable date and considered whether it was a prudent investment because it might prove useful in the future; and (2) therefore, the PUCO erred in evaluating the rate increase. View "In re Application of Suburban Natural Gas Co." on Justia Law

Portland Street Solar LLC appealed a Public Utility Commission order denying Portland Street’s petition for a certificate of public good (CPG) to install and operate a 500-kW solar group net-metering system adjacent to a previously permitted solar array owned by Golden Solar, LLC. Interpreting the definition of “plant” set forth in 30 V.S.A. 8002(18), the Commission determined that the proposed Portland Street project would be part of a single plant along with the already-approved adjacent Golden Solar project and thus would exceed the 500-kw energy-generating-capacity limit applicable in the net-metering program. On appeal, Portland Street argued the Commission’s decision was inconsistent with the Vermont Supreme Court’s controlling precedent, as well as prior Commission decisions involving similar cases, and that the Commission exceeded its statutory authority by expansively construing the component parts of section 8002(18) that defined the characteristics of a single plant. Applying the appropriate deferential standard of review, the Supreme Court concluded the Commission’s self-described expanded and refined interpretation of what constituted a single plant under section 8002(18) was not arbitrary, unreasonable, or discriminatory and did not amount to compelling error that would require the Court to intervene in matters the Legislature has delegated to the Commission’s expertise. Accordingly, the Court affirmed the Commission’s decision denying Portland Street’s petition for a CPG to install and operate its proposed facility under the net-metering program. View "In re Petition of Portland Street Solar LLC" on Justia Law

The issue this case presented for the Alaska Supreme Court's review centered on a challenge to the lieutenant governor’s decision that the sponsors of an initiative, “An Act changing the oil and gas production tax for certain fields, units, and nonunitized reservoirs on the North Slope,” had collected enough signatures to allow the initiative to appear on the ballot in the 2020 general election. Entities opposed to the initiative argued that signatures should not have been counted because the signature gatherers (the circulators) falsely certified that their compensation complied with Alaska election law. The statute governing circulator compensation allows them to be paid no more than “$1 a signature.” The superior court decided that this statute was unconstitutional because it imposed an unreasonable burden on core political speech — “interactive communication concerning political change.” It therefore concluded that the lieutenant governor properly counted the challenged signatures and properly certified the initiative petition for the ballot. The entities opposed to the initiative filed this appeal. The Supreme Court heard oral argument in August 2020, and on August 31 issued a summary order affirming the superior court’s judgment. This opinion explained the Court's decision. View "In re Resource Development Council for Alaska, Inc., et al." on Justia Law

The Alaska Oil & Gas Conservation Commission denied an individual’s request for a hearing regarding a reported natural gas leak and whether the leak constituted “waste” under Alaska law. The agency concluded it had no jurisdiction over the matter because it previously had investigated and had concluded the leak did not constitute “waste.” The individual appealed to the superior court, which affirmed the agency’s decision. The Alaska Supreme Court reversed, finding the individual's request for a hearing was improperly denied: "The Commission has jurisdiction over waste determinations, and substantial evidence does not support its assertion that it investigated and concluded this leak was not waste." View "French v. Alaska Oil & Gas Conservation Commission" on Justia Law