Justia Energy, Oil & Gas Law Opinion Summaries

In this case regarding the determination of the tax court valuing Minnesota Energy Resources Corporation’s (MERC) natural gas pipeline distribution system for the years 2008 through 2012, the Supreme Court affirmed the decision of the tax court on remand, holding that the tax court followed the Court’s instructions on remand and properly applied the Court’s clarified standard to MERC’s claim of external obsolescence. On remand, the tax court found that MERC failed to demonstrate that external obsolescence affected the value of its property. The Supreme Court affirmed, holding (1) the tax court correctly evaluated whether MERC’s evidence of external obsolescence was credible, reliable, and relevant; and (2) the tax court’s decision was justified by the evidence and in conformity with law. View "Minnesota Energy Resources Corp. v. Commissioner of Revenue" on Justia Law

NorthWestern challenged FERC's determination that its proposed rate was not just and reasonable. The DC Circuit held that FERC's decision in this case was reasonable and reasonably explained where FERC reasonably modified NorthWestern's proposed cost-calculation ratio by excluding the megawatts associated with "regulation down" from the numerator; FERC did not arbitrarily increase the denominator of NorthWestern's proposed cost-calculation ratio; FERC's decision on fuel costs was reasonable and reasonably explained; and FERC acted reasonably by requiring NorthWestern to make separate Section 205 filings. The court also held that FERC properly decided to treat this case like an ordinary over-collection case and ordered a refund. Therefore, the court denied the petition for review. View "NorthWestern Corp. v. FERC" on Justia Law

The Second Circuit denied the petition for review of FERC's two orders authorizing Millennium Pipeline to construct a natural gas pipeline in Orange County, New York. The court held that the Department waived its authority to review Millennium's request for a water quality certification under the Clean Water Act by failing to act on that request within one year. The court concluded that FERC did have jurisdiction over the pipeline where the Natural Gas Act provided that FERC had plenary authority over the transportation of natural gas in interstate commerce. View "New York State Department of Environmental Conservation v. FERC" on Justia Law

In 2004, the Commission found that certain of Entergy's rates were unjust and unreasonable. On a challenge by the LPSC, the DC Circuit remanded the case to the Commission because it had adequately failed to explain its reasoning in departing from its general policy of ordering refunds when consumers have paid unjust and unreasonable rates. The Commission, on remand, clarified that it actually has no general policy of ordering refunds in cases of rate design. After the Commission's correction of its characterization of its own precedent, the court found that the Commission's denial of refunds accords with its usual practice in cost allocation cases such as this one. The court also found that the Commission adequately explained its conclusion that it would be inequitable to award refunds in this case. Therefore, because the Commission did not abuse its discretion, the court denied the petition for review. View "Louisiana Public Service Commission v. FERC" on Justia Law

Anticipating the expiration of the fifty-year license for the Catawba-Wateree Project, Duke Energy petitioned for review of FERC's grant of a forty-year license. At issue was whether the Commission reasonably found that the measures required by the hydroelectric license it issued to Duke Energy were "moderate," warranting a forty-year license term under the Commission's precedents. The DC Circuit denied the petition for review and accorded due deference to the Commission's expertise in determining whether measures under a license were moderate or extensive and to its interpretation of its precedent and policy choices. View "Duke Energy Carolinas, LLC v. FERC" on Justia Law

New Energy Economy, Inc. (NEE) appealed a final order issued by the New Mexico Public Regulation Commission (PRC). NEE contended the PRC violated New Mexico law by approving a contested stipulation granting the Public Service Company of New Mexico (PNM) certificates of public convenience and necessity (CCNs) to acquire new generation resources and by filing a notice proposing to dismiss the protests to PNM’s 2014 integrated resource plan (IRP). The New Mexico Supreme Court determined NEE’s arguments were predicated on a mistaken understanding of the law, and NEE asked the Court to accept factual assertions that were rejected in earlier proceedings. The Court affirmed the PRC’s final order. View "New Energy Econ. v. N.M. Pub. Regulation Comm'n" on Justia Law

The Supreme Court affirmed the decision of the court of appeals granting summary judgment to the chief of the oil-and-gas resources-management division of the Ohio Department of Natural Resources (ODNR), the director of ODNR, the state, and the governor of Ohio (collectively, Appellees) on the grounds that Food and Water Watch (FWW) and FreshWater Accountability Project (FWAP) lacked standing to bring this action for a writ of mandamus to compel the ODNR to promulgate rules relating to the storage, recycling, treatment, processing, and disposal of waste substances associated with oil and gas drilling. The court held (1) because FWAP did not demonstrate that its individual members would have standing in their own right, its claim for associational standing failed; (2) this court declines to extend State ex rel. Ohio Academy of Trial Lawyers v. Sheward, 715 N.E.2d 1062 (Ohio 1999); and (3) FWAP waived other arguments regarding standing and did not otherwise demonstrate that it had standing to proceed in this mandamus action. View "State ex rel. Food & Water Watch v. State" on Justia Law

The Supreme Court affirmed the decision of the court of appeals granting summary judgment to the chief of the oil-and-gas resources-management division of the Ohio Department of Natural Resources (ODNR), the director of ODNR, the state, and the governor of Ohio (collectively, Appellees) on the grounds that Food and Water Watch (FWW) and FreshWater Accountability Project (FWAP) lacked standing to bring this action for a writ of mandamus to compel the ODNR to promulgate rules relating to the storage, recycling, treatment, processing, and disposal of waste substances associated with oil and gas drilling. The court held (1) because FWAP did not demonstrate that its individual members would have standing in their own right, its claim for associational standing failed; (2) this court declines to extend State ex rel. Ohio Academy of Trial Lawyers v. Sheward, 715 N.E.2d 1062 (Ohio 1999); and (3) FWAP waived other arguments regarding standing and did not otherwise demonstrate that it had standing to proceed in this mandamus action. View "State ex rel. Food & Water Watch v. State" on Justia Law

The Supreme Court denied the petition for a writ of mandamus filed by a group of landowners (“Landowners”) seeking an order compelling the Ohio Department of Natural Resources’ Division of Oil and Gas Resources Management (“the Division”) and its chief to commence appropriation proceedings to compensate Landowners for their land that was included in an oil and gas drilling unit. Landowners objected an an order issued by the chief requiring that a reservoir of oil and gas underlying multiple tracts of land be operated as a unit to recover the oil and gas, arguing that the order amounted to a taking of their property for which they must be compensated. The Supreme Court denied Landowners’ petition for a writ of mandamus, holding that Landowners had an adequate remedy by way of appeal to the county court of common pleas. View "State ex rel. Kerns v. Simmers" on Justia Law

FERC issued a series of orders empowering incoming generators within the Midcontinent Independent System Operator (MISO) region to elect to self-fund this new construction, or to seek financing from third parties, regardless of whether the current grid owners wish to fund the construction themselves. The DC Circuit vacated the orders, holding that there was neither evidence nor economic logic supporting FERC's discriminatory theory as applied to transmission owners without affiliated generation assets. The court also held that FERC did not adequately respond to petitioners' argument that involuntary generator funding compelled them to construct, own, and operate facilities without compensatory network upgrade charges – thus forcing them to accept additional risk without corresponding return as essentially non-profit managers of these upgrade facilities. Accordingly, the court remanded for further proceedings. View "Ameren Services Co. v. FERC" on Justia Law