Justia Energy, Oil & Gas Law Opinion Summaries

Shieldalloy, manufacturer of metal alloys in New Jersey, petitioned for review of the NRC's order reinstating the transfer of regulatory authority to the State of New Jersey under the Atomic Energy Act, 42 U.S.C. 2021. The order at issue addressed concerns raised by this Court in Shieldalloy II. The court concluded that the NRC's transfer of regulatory authority to New Jersey under section 2021 was not arbitrary or capricious because New Jersey's regulations are compatible with the NRC's regulations and its reading of 10 C.F.R. 20.1403(a). The NRC has rationally addressed concerns when it provided a textual analysis of section 20.1403 and explained how New Jersey's regulatory regime is adequate and compatible with the NRC's regulatory program. The order does not conflict with the NRC's prior interpretations or amount to a convenient, post hoc litigation position. Accordingly, the court denied the petition for review. View "Shieldalloy Metallurgical Corp. v. NRC" on Justia Law

Columbia, an interstate natural gas company subject to the jurisdiction of the Federal Energy Regulatory Commission (FERC), seeks to replace a portion of a natural gas pipeline that runs in and around York County, Pennsylvania. Because the original location of the pipeline has become heavily populated, the replacement will not track the original line but will be outside the existing right of way. To obtain easements necessary to complete construction of the replacement, in 2013, Columbia filed Complaints in Condemnation against four Landowners in federal court. The district court held that Columbia did not have the right of eminent domain required to condemn the easements, reasoning that 18 C.F.R. 157.202(b)(2)(i), was ambiguous. The Third Circuit reversed, finding that the regulation clearly anticipates replacement outside the existing right of way and contains no adjacency requirement. The district court erroneously adopted its own definition of “replace” and concluded that a “notice” of “proposed rulemaking” for “Emergency Reconstruction of Interstate Natural Gas Facilities” promulgated by FERC after 9/11 was relevant.View "Columbia Gas Transmission, LLC v. 1.01 Acres in Penn Twp" on Justia Law

In an appeal by allowance, the issue this case presented for the Supreme Court's review was, inter alia, the scope of the authority of the Department of Environmental Protection (“DEP”) to issue administrative orders under the Bituminous Coal Mine Safety Act. The Court found that the DEP acted within its authority with respect to the orders it issued regarding certain failures to report accidents, but that it improperly issued other orders with respect to requiring fire extinguishers on certain mining vehicles. Thus, the Court reversed in part, and affirmed in part, the order of the Commonwealth Court. The case was thereafter remanded for further proceedings. View "DEP, Aplt. v. Emerald Coal Resources, et al" on Justia Law

Plaintiffs appealed the district court's grant of summary judgment to Alabama Power on their complaint alleging that Alabama Power unreasonably lowered the water levels of Smith Lake. Determining that Article III's standing requirements have been met, the court concluded that the district court did not abuse its discretion in declining to issue a declaratory judgment concerning plaintiffs' purported riparian rights. Plaintiffs did not have a right to a declaratory judgment and the district court did not abuse its substantial discretion by assuming plaintiffs had riparian rights and then resolving their claims on an alternative basis. The court agreed with the district court that plaintiffs' claims were a collateral attack on the FERC's final relicensing determination. Plaintiffs' argument that they were not subject to the exclusive judicial review provision of section 825l(b) of the Federal Power Act, 16 U.S.C. 825l(b), because they are distinct parties from Smith Lake Improvement and Stakeholders Association (SLISA) and did not participate in the proceedings before the FERC was unavailing. Section 821 of the Federal Power Act, 16 U.S.C. 821, did not allow plaintiffs to veto the operation of a project that was approved and licensed by the FERC. Accordingly, the court affirmed the district court's judgment denying plaintiffs' motion for partial summary judgment and granting summary judgment to Alabama Power.View "Otwell, Sr., et al. v. Alabama Power Co." on Justia Law

In consolidated appeals, two groups challenged the BPA's decision to forgo refunds after the court invalidated three sets of contractual arrangements in which BPA agreed to subsidize certain longtime industrial customers rather than sell them power directly. The court held that these subsidy arrangements were unreasonable and were contrary to BPA's authority. The court remanded to BPA regarding whether it could or should seek refunds of the improper subsidies. BPA concluded that it was contractually barred from seeking refunds as to some of the invalidated contracts; it had no legal or equitable basis for seeking refunds as to the others; and if it did pursue recovery of the subsidies, it might become mired in counterproductive, protracted litigation. Petitioners' core argument is that their power costs have been impermissibly raised by BPA's decision because, if BPA did seek refunds of the subsidies, it could pass the recovered funds to its customers as lower rates. The court rejected petitioners' contention that BPA has a duty, under either the Constitution's Appropriations Clause or BPA's governing statutes, to seek all refunds to which it may be entitled. The court concluded that BPA's decisions in most respects sufficiently and reasonably balanced its competing obligations to merit the court's deference, except in one respect. The court denied the petition for review with regard to the decision not to seek refunds with respect to the 2007 Block Contracts and the Port Townsend Contract. The court granted the petition and remanded to BPA for further proceedings with regard to recovery of subsidies paid under the Alcoa Amendment. View "ICNU v. BPA" on Justia Law

BNE Energy, Inc. submitted two petitions for declaratory rulings seeking the Connecticut Siting Council’s approval for the construction and operation of three electric generating wind turbines on two separate properties in the town of Colebrook. Plaintiffs intervened in the proceedings. The Council approved the petitions with conditions, and Plaintiffs appealed. The trial court dismissed Plaintiffs’ appeals. The Supreme Court affirmed, holding that the trial court did not err in concluding that the Council (1) had jurisdiction over BNE’s petitions; (2) was authorized to attach conditions to its approval of the petitions; (3) was authorized to approve the petitions even though it had not determined that the proposed projects comply with state noise law; (4) properly approved of shorter hub heights for one of the projects; and (5) did not deprive Plaintiffs of their right to fundamental fairness during the hearings on the petitions. View "FairwindCT, Inc. v. Conn. Siting Council" on Justia Law

The Federal Power Act, 16 U.S.C. 791a., authorizes federal regulation of transmitting and selling electric power in interstate commerce and grants the Federal Energy Regulatory Commission (FERC) jurisdiction over transmission of electric energy in interstate commerce and sale of such energy at wholesale in interstate commerce. The “filed rate doctrine” requires that interstate power rates filed with or fixed by FERC be given binding effect by state utility commissions determining intrastate rates. The electric companies suffered $250 million in “line losses,” energy lost when electricity travels over power lines, and interest related to those costs. Their line losses had increased under a mandate by FERC relating to calculation. The companies attempted to recover those costs on their customers’ utility bills. The Pennsylvania Public Utility Commission (PUC) rejected their proposal to classify line-loss costs as a cost of transmission (as opposed to a cost of electricity generation), preventing them from passing those costs through to their customers. The companies lost in Pennsylvania state courts; the U.S. Supreme Court denied review. The companies then sought declaratory judgment and injunctive relief in federal court against the PUC. The district court held that their unsuccessful state efforts precluded relief in federal court under the doctrine of issue preclusion. The Third Circuit affirmed.View "Metro. Edison Co. v. PA Pub. Util. Co." on Justia Law

Dissatisfied with the stock and reliability of power-generating facilities in New Jersey, the state adopted the Long Term Capacity Pilot Program Act (LCAPP), instructing New Jersey’s Board of Public Utilities to promote construction of new power-generating facilities in the state. Rather than pay for the construction of these plants directly, the Board of Public Utilities crafted a set of contracts, called Standard Offer Capacity Agreements, which assured new electric energy generators 15years of revenue from local utilities and, ultimately, New Jersey ratepayers. LCAPP guaranteed revenue to new generators by fixing the rates those generators would receive for supplying electrical capacity, that is, the ability to make energy when called upon. The district court found LCAPP invalid. The Third Circuit affirmed. With the Federal Power Act, Congress placed “the transmission of electric energy in interstate commerce and the sale of such energy at wholesale in interstate commerce” under federal control, 16 U.S.C. 824(a). When New Jersey arranged for LCAPP generators to receive preferential capacity rates, the state entered into a field of regulation beyond its authority. Federal law preempts, and invalidates, LCAPP and the related Standard Offer Capacity Agreements.View "PPL EnergyPlus, LLC v. Solomon" on Justia Law

This appeal concerns the Texas PUC's interpretation and implementation of a federal statutory and regulatory scheme governing the purchase of energy between public utilities and certain energy production facilities known as Qualifying Facilities. Exelon, qualifying wind generation facilities, challenged a state rule and order which prohibited it from forming Legally Enforceable Obligations when selling power. The court vacated the portion of the judgment regarding Exelon's challenge to the PUC's order and directed the district court to dismiss for want of subject matter jurisdiction. The court reversed as to the remaining challenges to the rule and remanded because PUC acted within its discretion and properly implemented the federal regulation at issue. View "Exelon Wind 1, L.L.C., et al. v. Nelson, et al." on Justia Law

The companies obtained an oil and gas lease from the government for a 5760-acre tract on the Outer Continental Shelf. They made an initial bonus payment of $23,236,314 and have paid additional rental payments of $54,720 per year. The lease became effective on August 1, 2008, and had an initial term running through July 31, 2016. It provided that it issued pursuant to and was subject to the Outer Continental Shelf Lands Act of August 7, 1953, (OCSLA) 43 U.S.C. 1331 and “all regulations issued pursuant to the statute in the future which provide for the prevention of waste and conservation of the natural resources of the Outer Continental Shelf and the protection of correlative rights therein; and all other applicable statutes and regulations.” In 2010, an explosion and fire on the Deepwater Horizon semi-submersible oil drilling rig in the Gulf of Mexico killed 11 workers and caused an oil spill that lasted several months. As a result, the government imposed new regulatory requirements, Oil Pollution Act (OPA), 33 U.S.C. 2701. The companies sued for breach of contract. The Claims Court and Federal Circuit ruled in favor of the government, finding that the government made the changes pursuant to OCSLA, not OPA. View "Century Exploration New Orleans, LLC v. United States" on Justia Law