Justia Energy, Oil & Gas Law Opinion Summaries

Articles Posted in Government & Administrative Law
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The petition for review before the court arose from a dispute between the IURC and PJM, which, subject to the Commission's oversight, operated the market for wholesale electricity in the District of Columbia and all or parts of 13 states, including Indiana. The IURC petitioned for review of an order of the Commission approving the tariff of PJM. The court dismissed the petition insofar as it challenged the order on grounds that the IURC did not raise with sufficient specificity in its request for rehearing by the Commission pursuant to 16 U.S.C. 825l(b). In all other respects, the court denied the petition because the IURC had not shown the Commission acted unreasonably. View "Indiana Utility Regulatory Comm. v. FERC" on Justia Law

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In this action, the trial court granted summary judgment against a locality, holding it liable to landowners under the State Water Control Law, Va. Code Ann. 62.1-44.2 through -44.34:28, in particular Code 62.1-44.34:18(C) of the Oil Discharge Law, for the contamination of groundwater by leachate and landfill gas. The Supreme Court reversed the trial court's judgment, holding that the trial court erred in awarding summary judgment to the landowners and finding the locality liable under the Oil Discharge Law, as the Oil Discharge Law does not apply to the passive, gradual seepage of leachate and landfill gas into groundwater. View "Campbell County v. Royal" on Justia Law

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At issue in this case was whether the court of appeals erred in (1) reversing a circuit court's judgment and applying the arbitrary and capricious standard of review to the State Water Control Board's decision to reissue a Virginia pollutant discharge elimination system permit to Virginia Electric and Power Company for its nuclear power station; and (2) reversing the circuit court and affirming the Board's determination that the discharge of heated water from the station into a waste heat treatment facility, classified as a "waste treatment facility" under state and federal regulations, did not require a separate discharge permit. For the reasons stated in Commonwealth v. Blue Ridge Environmental Defense League, Inc., the Court affirmed the judgment of the court of appeals. View "Blue Ridge Envtl. Defense League v. Commonwealth" on Justia Law

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Appellant Taxpayers were the owners of all or a portion of the oil, gas and other minerals in, on, and under each of their real property located in the counties party to this lawsuit. Taxpayers filed a complaint against the Counties, seeking declaratory judgment and injunctive relief, alleging that an ad valorem property tax was an illegal exaction. The circuit court concluded that Taxpayers had failed to make a proper illegal-exaction challenge and dismissed their lawsuit. The Supreme Court affirmed, holding that the circuit court was correct in dismissing the Taxpayers' complaint where (1) the crux of Taxpayers' argument was that the tax assessed against them was illegal because the assessment was flawed; and (2) the Taxpayers' avenue of relief for its assessment grievance lay with each county's equalization board. View "May v. Akers-Lang" on Justia Law

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The issue before the Supreme Court was whether the deduction in RCW 82.04.433(1) applies to reduce Business and Occupation (B&O) taxes for manufacturing activities. Plaintiff Tesoro Refining and Marketing Company owns and operates a refinery in Washington state from which it processes crude oil from Alaska, Canada and other sources. The legislature created a tax deduction for the amount of tax "derived from the sales of fuel for consumption outside the territorial waters of the United States." On its monthly tax returns from 1999-2007, Tesoro reported its fuel sales on both the "Manufacturing" B&O tax line and the "Wholesaling and Retailing" B&O tax line. After completing an audit of the refinery, Tesoro requested a partial tax refund claiming the deduction against amounts paid in B&O tax on manufacturing from 1999 through 2004. The request was denied by the Department of Revenue's (DOR) appeals division on the ground that the deduction applied only to taxes paid under the "wholesaler and retailer" B&O tax line. Tesoro appealed to the superior court; the Court of Appeals held that the company could deduct the amount of its "offshore" bunker fuel sales from its B&O taxes. Upon review, the Supreme Court reversed the Court of Appeals and reinstated the superior court's grant of summary judgment to the DOR: "the plain language of RCW 82.04.433(1) … indicates that the B&O deduction applies only to ... taxes on wholesale and retail sales, not on manufacturing." View "Tesoro Ref. & Mktg. Co. v. Dep't of Revenue" on Justia Law

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The Tribes share an interest in a Wyoming Reservation. Consolidated suits, filed in 1979, claimed that the government breached fiduciary and statutory duties by mismanaging the Reservation's natural resources and income derived from exploitation of those resources. The Court of Federal Claims divided the suit into phases. One addressed sand and gravel and has been settled. The other two phases were devoted to oil and gas issues. An issue concerning the Government's failure to collect royalties after October, 1973 has been resolved. The final phase concerned pre-1973 oil and gas royalty collection and a series of discrete oil-and-gas issues. In 2007, the court granted the government judgment on the pleadings, finding that the claim was not filed within six years of the date on which it first accrued. The Federal Circuit vacated, finding that the claim asserted a continuing trespass, so that the Tribes can seek damages for trespasses which occurred within six years of the filing of this suit and all trespasses that occurred after the filing of this suit. The Tribes must establish that the government had a duty to eject trespassers from the parcels. View "Shoshone Indian Tribe v. United States" on Justia Law

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This matter came before the court on a reservation and report by a single justice of the court of a decision and final order of the department approving a power purchase agreement (PPA) that National Grid entered into with Cape Wind. The four parties that brought the appeal were all interveners in the department's proceeding. They claim that the PPA violated the commerce clause of the United States Constitution; the department improperly found that the PPA was cost effective and in the public interest; the contract should have been solicited through competitive bidding and subject to a cap on its size; and the department erroneously both approved a method for recovering costs from all distribution customers and required that the contract facilitate financing of a renewable energy generation source. The interveners sought reversal of the department's decision and order, and a remand to the department for further proceedings. The court reviewed the department's decision under G.L.c. 25, section 5, and gave deference to the department's expertise and experience, remanding to the county court where the single justice will affirm the department's decision. View "Alliance to Protect Nantucket Sound, Inc. v. Dept. of Public Utilities & others (No. 1)" on Justia Law

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The court addressed a procedural question that related to Alliance to Protect Nantucket Sound, Inc. v. Dept. of Public Utilities & others (No. 1). At issue was whether the department committed error in denying the third motion filed by the Alliance to reopen the administrative record in the proceeding that the court reviewed in Alliance III. The court applied the more deferential standard of review that generally applied to procedural decisions by agencies on whether to reopen an administrative record and held that the department did not abuse its discretion in declining to reopen a closed record in a completed proceeding in order to accept more information on the same points. Accordingly, the case was remanded to the county court where the decision of the department denying the motion to reopen the record was to be affirmed. View "Alliance to Protect Nantucket Sound, Inc. v. Dept. of Public Utilities & others (No. 2)" on Justia Law

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PSEG challenged orders of the FERC accepting the results of an auction for electric generation capacity conducted by ISO New England. In those orders, FERC approved ISO New England's determination that PSEG's resources in Connecticut could not reduce their capacity supply obligation because doing so would endanger the system's reliability. FERC also held that ISO New England could reduce the per unit price paid to PSEG for that capacity. The court held that because the latter holding was based on tariff provisions that the FERC thought were clear but now conceded were ambiguous, and because in the course of construing those provisions it failed to respond to PSEG's facially legitimate objections, the petition was granted and the orders were remanded for further consideration. View "PSEG Energy Resources & Trade, et al. v. FERC" on Justia Law

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This case arose from a decision rendered by the State Board of Equalization (Board) concerning the valuation point for tax purposes of the natural gas production from the LaBarge Field. The Supreme Court remanded the issue to the Board of whether the meters located at the LaBarge Field well sites were "custody transfer meters" as defined by Wyo. Stat. Ann. 39-14-203(b)(iv) or volume meters for Exxon's share of gas production. The Board held (1) the meters were not custody transfer meters for Exxon's share of gas production, and (2) the same meters were custody transfer meters for the gas produced by two other working interest owners, petroleum companies, who were not parties to the action. The Supreme Court (1) affirmed the Board's determination that the meters were not custody transfer meters for Exxon's gas where the Board's determination harmonized with precedent established in Amoco Prod. Co. v. Dep't of Revenue; but (2) reversed the Board's determination that the meters were custody transfer meters for the petroleum companies' gas because the Board did not have the authority to determine the valuation point for "non-party" persons or entities that do not appeal their tax assessments. View "Exxon Mobil Corp. v. Wyo. Dep't of Revenue" on Justia Law