Justia Energy, Oil & Gas Law Opinion Summaries

Through Pennsylvania’s Land Recycling and Environmental Remediation Standards Act, ("Act 2"), the General Assembly created a scheme for establishing “cleanup standards” applicable to voluntary efforts to remediate environmental contamination for which a person or entity may bear legal responsibility. Appellant EQT Production Company (“EPC”), owned and operated natural gas wells in the Commonwealth. In May 2012, the company notified Appellee, the Department of Environmental Protection (the “Department” or “DEP”), that it had discovered leaks in one of its subsurface impoundments containing water that had been contaminated during hydraulic fracturing operations. Subsequently, EPC cleared the site of impaired water and sludge and commenced a formal cleanup process pursuant to Act 2. In May 2014, the agency tendered to EPC a proposed “Consent Assessment of Civil Penalty,” seeking to settle the penalty question via a payment demand of $1,270,871, subsuming approximately $900,000 attending asserted ongoing violations. EPC disputed the Department’s assessment, maintaining that: penalties could not exceed those accruing during the time period in which contaminants actually were discharged from the company’s impoundment; all such actual discharges ended in June 2012; and the Act 2 regime controlled the extent of the essential remediation efforts. The issue this case presented for the Supreme Court's review centered on whether ECT had the right to immediately seek a judicial declaration that the DEP's interpretation of the Act was erroneous. The Court held that the impact of the Department’s threat of multi-million dollar assessments against EPC was sufficiently direct, immediate, and substantial to create a case or controversy justifying pre-enforcement judicial review via a declaratory judgment proceeding, and that exhaustion of administrative remedies relative to the issues of statutory interpretation that the company has presented was unnecessary. View "EQT Production Co. v. DEP" on Justia Law

The Department of Commerce determined that utility scale wind towers from the People’s Republic of China and utility scale wind towers from the Socialist Republic of Vietnam (together, the subject merchandise) were sold in the United States at less than fair value and that it received countervailable subsidies. The International Trade Commission made a final affirmative determination of material injury to the domestic industry. The determination was by divided vote of the six-member Commission. The Court of International Trade upheld the Commission’s affirmative injury determination. Siemens Energy, Inc., an importer of utility scale wind towers, challenged the determination. The issues on appeal concerned the interpretation and effect of the divided vote. The Federal Circuit affirmed, holding that the Court of International Trade properly upheld the Commission’s affirmative injury determination. View "Simens Energy, Inc. v. United States, Wind Tower Trade Coalition" on Justia Law

The Environmental Protection Agency (EPA) required that owners of underground storage tanks demonstrate their ability to pay cleanup costs and compensate third parties for bodily injury and property damage arising out of releases of petroleum products from their tanks. New Hampshire’s Oil Discharge and Disposal Cleanup Fund (ODD Fund) was an EPA-approved program that complied with the federal requirement. In 2003, the State sued several gasoline suppliers, refiners, and chemical manufacturers seeking damages for groundwater contamination allegedly caused by methyl tertiary butyl ether (MTBE). In 2012, petitioners sought a declaratory judgment and equitable relief against the State. Each petitioner was a “distributor” of oil under RSA chapter 146-D and paid fees into the ODD Fund. They alleged that “[t]o date, the costs of MTBE remediation in the State of New Hampshire has been paid for primarily through” the ODD Fund, and that that fund was financed, in part, through fees that they paid. Petitioners sought a declaration that those fees “are unconstitutional as the [State] has recovered and/or will recover funds from the MTBE Lawsuit for the cost of MTBE remediation,” and that those fees should be reimbursed to them from: (1) “the settlement proceeds the [State] has received and will receive through the MTBE Litigation”; (2) “any future recovery the [State] receives through the MTBE Litigation”; and (3) “[a]dditionally, or in the alternative, . . . from the funds recovered, and/or to be recovered in the future in the MTBE Litigation, . . . under principles of equitable subrogation and/or unjust enrichment.” On appeal, the petitioners argue that the trial court erred in ruling that they lacked standing to seek reimbursement of their fees from the settlement funds. They also argued that the trial court erred in ruling that their equitable claims are barred by sovereign immunity. Find View "Aranosian Oil Co., Inc. v. New Hampshire" on Justia Law

The Tennessee Valley Authority, a federal agency, operates power plants that provide electricity to nine million Americans in the Southeastern United States, 16 U.S.C. 831n-4(h). Like private power companies, TVA must comply with the Clean Air Act. In 2012, the Environmental Protection Agency told TVA that it needed to reduce emissions from some of the coal-fired units at its plants, including the Drakesboro, Kentucky, Paradise Fossil Plant. TVA considered several options, including maintaining coal-fired generation by retrofitting the Paradise units with new pollution controls and switching the fuel source from coal to natural gas. After more than a year of environmental study, TVA decided to switch from coal to natural-gas generation and concluded that the conversion would be better for the environment. TVA issued a “finding of no significant impact” on the environment stemming from the newly configured project. The district court denied opponents a preliminary injunction, and granted TVA judgment on the administrative record. The Sixth Circuit affirmed, rejecting arguments that TVA acted arbitrarily in failing to follow the particulars of the Tennessee Valley Authority Act for making such decisions, and in failing to consider the project’s environmental effects in an impact statement under the National Environmental Policy Act. View "Ky. Coal Ass'n, Inc. v. Tenn. Valley Auth." on Justia Law

The Swecker farm in Iowa has a wind generator and is a qualifying power production facility certified by the Federal Energy Regulatory Commission (FERC). The Sweckers sell surplus electric energy to Midland Power Cooperative at a rate established by the Iowa Utilities Board (IUB), implementing FERC rules and regulations, 16 U.S.C. 824a-3(f). For many years, the Sweckers and Midland have litigated rate disputes. The district court dismissed their current suit against Midland and its primary supplier, Central Iowa Power Cooperative (CIPCO), seeking declaratory and injunctive relief requiring Midland “to purchase available energy from plaintiffs . . . at Midland’s full avoided cost, rather than CIPCO’s avoided cost.” The Eighth Circuit affirmed. FERC’s interpretation is controlling and forecloses the contrary interpretation of 18 C.F.R. 292.303(d) urged by the Sweckers. View "Swecker v. Midland Power Coop." on Justia Law

The Public Regulation Commission (PRC) granted Southwestern Public Service Company’s (SPS) application to: (1) include a prepaid pension asset in its rate base in order for SPS to earn a return on this asset; and (2) obtain a renewable energy cost rider to recover approximately $22 million of renewable energy procurement costs from those customers who did not have a legislatively imposed limit on their renewable energy costs (non-capped customers). The Attorney General appealed the PRC’s final order granting SPS’s application, arguing that the approved rates were unjust and unreasonable because the inclusion of the entire prepaid asset in the rate base was not supported by substantial evidence, and the PRC acted contrary to law in allowing SPS to recover the aforementioned renewable energy costs from non-capped customers. After review, the Supreme Court affirmed the PRC because: (1) SPS was entitled to earn a reasonable rate of return on the investor-funded prepaid pension asset; and (2) SPS could recover its renewable energy costs in excess of the large customer cap from non-capped customers because such a recovery mechanism was the only viable method of cost recovery that was consistent with the purposes of the Renewable Energy Act. View "N.M. Att'y. Gen. v. N.M. Pub. Regulation Comm'n" on Justia Law

At the center of this an appeal was the superior court's de novo valuation of the Trans-Alaska Pipeline System (TAPS) for tax assessment years 2007, 2008, and 2009. In February 2014 the Alaska Supreme Court issued a decision affirming the superior court's de novo valuation of TAPS for the 2006 assessment year.1 The parties introduced considerably more evidence during trial for the 2007, 2008, and 2009 years, but the operative facts remained substantially the same and the superior court applied similar standards and methods for valuation. Many of the issues raised on appeal were similar or identical to issues raised in the 2006 appeal and thus are partially or wholly resolved by the Court's prior opinion. Because the superior court did not clearly err or abuse its discretion with regard to any of its findings or its methodology, and because it committed no legal error in its conclusions, the Supreme Court affirmed. View "Alaska Dept. of Revenue v. BP Pipelines (Alaska) Inc." on Justia Law

MISO, an organization of independent transmission-owning utilities, has linked the transmission lines of its members into a single interconnected grid across 11 states. The Generators, which operate 150-megawatt wind-powered electric generation facilities in Illinois, wish to connect to the system run by MISO. The Federal Energy Regulatory Commission (FERC), acting under 16 U.S.C. 824(a), has standardized the process: the Generators submitted requests to MISO, which then produced studies (paid for by the Generators) to assess potential impact on the grid and calculate the cost of necessary upgrades. After the studies were complete and agreements signed, MISO notified the Generators of a “significant error” that failed to include certain upgrades and that the Generators would either have to agree to fewer megawatts or pay for additional upgrades estimated to cost $11.5 million. MISO presented superseding Agreements to both Generators. The companies refused to sign. FERC found that the Generators should pay for the additional network upgrades. The Seventh Circuit denied a petition for review. The record failed to show that the Generators relied on the original, mistaken studies or that reducing the output would have made their farms economically unsustainable. They also had an exit option. The court noted that the Generators apparently built their wind farms despite the dispute. View "Pioneer Trail Wind Farm, LLC v. Fed. Energy Regulatory Comm'n" on Justia Law

The South Dakota Department of Revenue assessed Northern Border Pipeline Company, the operator of an interstate pipeline that provides transportation services to natural gas owners who desire to ship their gas, for use tax on the value of the shippers’ gas that the shippers allowed Northern Border to burn as fuel in compressors that moved the gas through the pipeline. An administrative law judge affirmed the assessment. The circuit court reversed, holding that Northern Border’s burning of the shippers’ gas was exempt from use tax under a tax exemption. The Supreme Court affirmed, holding that because Northern Border did not own the gas, use tax may not be imposed under this Court’s precedents. View "N. Border Pipeline Co. v. S.D. Dep’t of Revenue" on Justia Law

After PG&E's natural gas pipeline ruptured in San Bruno, killing and injuring several people, San Francisco filed suit against the Agency, alleging that the Agency failed to comply with the Natural Gas Pipeline Safety Act of 1968, 49 U.S.C. 60101 et seq. The court concluded that the plain statutory language, the statutory structure, the legislative history, the structure of similar federal statutes, and interpretations of similar statutory provisions by the Supreme Court and its sister circuits lead to the conclusion that the Pipeline Safety Act does not authorize mandamus-type citizen suits against the Agency. The court also concluded that San Francisco's claims that the Agency violated the Administrative Procedures Act (APA), 5 U.S.C. 701(a)(2), by unlawfully withholding the action of deciding whether the CPUC adequately enforces federal pipeline safety standards, and arbitrarily and capriciously approving the CPUC’s certification and providing federal funding to the CPUC, were not cognizable under the APA. Accordingly, the court affirmed the district court's dismissal of the suit. View "City & Cnty. of San Francisco v. U.S. D.O.T." on Justia Law