Justia Energy, Oil & Gas Law Opinion Summaries

Sycamore Cross Solar LLC applied for certificates of public convenience and necessity (CPCN) to construct and operate a solar facility in Isle of Wight County and Surry County, Virginia. The project aimed to generate up to 240 megawatts of power and included transmission lines and associated facilities. The West Virginia & Appalachian Laborers’ District Council (WVALDC) participated in the case, arguing that the State Corporation Commission (Commission) failed to consider the benefits to specific groups as required by the Virginia Clean Economy Act (VCEA) and did not impose a local hiring condition.The Commission conducted an evidentiary hearing where Sycamore, WVALDC, and Commission staff presented their cases. Sycamore's witness testified about the project's economic benefits and commitment to local hiring, though no firm commitment was made. The Hearing Examiner recommended issuing the CPCNs without a local hiring condition but suggested notifying WVALDC about hiring timelines. The Commission adopted the Hearing Examiner's findings but declined the notification requirement, leading WVALDC to seek reconsideration.The Supreme Court of Virginia reviewed the case and affirmed the Commission's decision. The Court held that the VCEA only required the Commission to consider the benefits to specified groups, not make specific findings. The Commission's consideration of the evidence and its decision not to impose a hiring-related condition were within its discretion. The Court found no abuse of discretion, as the Commission reasonably concluded that the statutory requirements were met without the need for additional hiring conditions. View "WVALDC v. State Corporation Commission" on Justia Law

The case revolves around a former underground coal miner, Randy Brown, who contracted occupational pneumoconiosis (OP) due to his exposure to coal dust. In 2016, he was granted a 30% permanent partial disability (PPD) award for his OP. In 2018, Brown sought an increase in his award, claiming his condition had worsened. The Occupational Pneumoconiosis Board (OP Board) examined Brown and determined that he had an additional 20% impairment, bringing his total impairment rating to 50%. The claims administrator granted an additional 20% PPD award, which was protested by Brown's employer, Rockspring Development, Inc.Rockspring's protest was heard by the West Virginia Workers’ Compensation Office of Judges, which affirmed the claims administrator’s decision. Rockspring then appealed to the West Virginia Workers’ Compensation Board of Review, which also affirmed the decision. During the pendency of the claim process, Brown underwent a bilateral lung transplant. Post-transplant, Brown’s pulmonary function testing and x-ray reports showed no evidence of OP. Rockspring argued that the Board of Review was clearly wrong in affirming the additional 20% PPD award because Brown no longer had OP or any pulmonary impairment.The Supreme Court of Appeals of West Virginia disagreed with Rockspring's argument. The court noted that the relevant statutes do not indicate whether the decisionmaker should consider the pulmonary function of the pre-transplant lungs or the function of the post-transplant lungs when the transplant occurred during the pendency of the claim proceedings. Given the unique circumstances of the case and the deference afforded to the Board of Review, the court affirmed the Board of Review’s decision granting Brown an additional 20% PPD award. View "Rockspring Development, Inc. v. Brown" on Justia Law

In 2018, Mwande Serge Kpiele-Poda ("Employee") was injured at a wellsite while repairing a conveyor that activated and crushed his legs. While Employee's Workers' Compensation claim was still pending, he filed a petition asserting negligence and products liability against his employers, two wellsite operators, and the manufacturers and distributors of the conveyor. Ovintiv Mid-Continent, Inc. was named in the body of the petition but omitted from the caption. After the statute of limitations period expired, Employee amended his petition to add Ovintiv Mid-Continent, Inc. as a defendant in the petition's caption. A second amended petition added other parties. Ovintiv Mid-Continent, Inc. moved to dismiss arguing the claim was time-barred because the amended petition did not relate back to the first petition. Employee's employers also moved to dismiss arguing the Administrative Workers' Compensation Act and Oklahoma precedent precluded employees from simultaneously maintaining an action before the Workers' Compensation Commission and in the district court. The district court granted each dismissal motion and certified each order as appealable. The Oklahoma Supreme Court retained and consolidated Employee's separate appeals, holding: (1) the district court erred when it dismissed Employee's action against Ovintiv Mid-Continent, Inc. as time-barred; and (2) the district court properly dismissed Employee's intentional tort action for lack of subject matter jurisdiction. View "Kpiele-Poda v. Patterson-UTI Energy, et al." on Justia Law

The Federal Mine Safety and Health Amendments Act, 30 U.S.C. 801, requires the Secretary of the Department of Labor, through the Mine Safety and Health Administration (MSHA), to negotiate mine-specific ventilation plans with companies that operate the mines. In 2006-2018, Knight Hawk Coal operated its Prairie Eagle Mine pursuant to an MSHA-approved ventilation plan that permitted perimeter mining with 40-foot perimeter cuts. In 2018, MSHA conducted a ventilation survey at Prairie Eagle and concluded that the approved plan did not adequately ventilate the perimeter cuts. MSHA relied primarily on the results of chemical smoke tests, which involved survey team members observing smoke movement from a 44-foot distance. Months later, MSHA revoked the Prairie Eagle ventilation plan. After receiving a technical citation from MSHA for operating without an approved plan, Knight Hawk sought review by the Federal Mine Safety and Health Review Commission.The Commission’s ALJ found the revocation arbitrary and capricious, in part because the chemical smoke test results were unreliable and inconsistent and the Secretary ignored disagreements among MSHA ventilation survey team members regarding the results. The ALJ reinstated the previously-approved ventilation plan. The Commission affirmed, concluding that the Secretary failed to explain adequately why the existing ventilation plan was deficient. The D.C. Circuit denied the Secretary’s petition for review, finding that substantial evidence supports the ALJ’s finding. View "Secretary of Labor v. Knight Hawk Coal, LLC" on Justia Law

The Eighth Circuit affirmed the district court's grant of summary judgment in favor of OGT in an action brought by the oil field construction company to quiet a pipeline title based on defendant's ineligibility to claim a lien under North Dakota Century Code 35-24-04. The court agreed with the district court that defendant was an employee, rather than an independent contractor, and that section 35-24-04 does not confer lien rights upon employees.In this case, the factors that indicated that defendant was an employee include, among other things, that defendant earned a weekly salary that OGT paid him regardless of the number of hours, amount of work, or number of projects he completed; defendant completed a W-4 to indicate his tax withholdings; OGT withheld and paid employment taxes on defendant's wages and reported his income to him and the IRS on a Form W-2; OGT offered defendant regular employment benefits; and he worked full-time for OGT and no one else. View "Oil & Gas Transfer LLC v. Karr" on Justia Law

Dennis Woolman, former president of The Clemens Coal Company, challenged a district court’s determination that Liberty Mutual Fire Insurance Company didn’t breach a duty to him by failing to procure for Clemens Coal an insurance policy with a black-lung disease endorsement. Clemens Coal operated a surface coal mine until it filed for bankruptcy in 1997. Woolman served as Clemens Coal’s last president before it went bankrupt. Federal law required Clemens Coal to maintain worker’s compensation insurance with a special endorsement covering miners’ black-lung disease benefits. Woolman didn’t personally procure insurance for Clemens Coal but instead delegated that responsibility to an outside consultant. The policy the consultant ultimately purchased for the company did not contain a black-lung-claim endorsement, and it expressly excluded coverage for federal occupational disease claims, such as those arising under the Black Lung Benefits Act (the Act). In 2012, a former Clemens Coal employee, Clayton Spencer, filed a claim with the United States Department of Labor (DOL) against Clemens Coal for benefits under the Act. After some investigation, the DOL advised Woolman that Clemens Coal was uninsured for black-lung-benefits claims as of July 25, 1997 (the last date of Spencer’s employment) and that, without such coverage, Woolman, as Clemens Coal’s president, could be held personally liable. Woolman promptly tendered the claim to Liberty Mutual for a legal defense. Liberty Mutual responded with a reservation-of-rights letter, stating that it hadn’t yet determined coverage for Spencer’s claim but that it would provide a defense during its investigation. Then in a follow-up letter, Liberty Mutual clarified that it would defend Clemens Coal as a company (not Woolman personally) and advised Woolman to retain his own counsel. Liberty Mutual eventually concluded that the insurance policy didn’t cover the black-lung claim, and sued Clemens Coal and Woolman for a declaration to that effect. In his suit, Woolman also challenged the district court’s rejection of his argument that Liberty Mutual should have been estopped from denying black-lung-disease coverage, insisting that he relied on Liberty Mutual to provide such coverage. Having considered the totality of the circumstances, the Tenth Circuit Court of Appeals concluded the district court didn’t err in declining Woolman’s extraordinary request to expand the coverages in the Liberty Mutual policy. “Liberty Mutual never represented it would procure the coverage that Woolman now seeks, and the policy itself clearly excludes such coverage. No other compelling consideration justifies rewriting the agreement— twenty years later—to Woolman’s liking.” View "Liberty Mutual Fire Insurance v. Woolman" on Justia Law

Plaintiff-Appellant DTC Energy Group, Inc., sued two of its former employees, Adam Hirschfeld and Joseph Galban, as well as one of its industry competitors, Ally Consulting, LLC, for using DTC’s trade secrets to divert business from DTC to Ally. DTC moved for a preliminary injunction based on its claims for breach of contract, breach of the duty of loyalty, misappropriation of trade secrets, and unfair competition. The district court denied the motion, finding DTC had shown a probability of irreparable harm from Hirschfeld’s ongoing solicitation of DTC clients, but that DTC could not show the ongoing solicitation violated Hirschfeld’s employment agreement. After review, the Tenth Circuit determined the district court did not abuse its discretion when denying DTC's motion for a preliminary injunction, and affirmed. View "DTC Energy Group v. Hirschfeld" on Justia Law

Plaintiff filed suit against his former employer, Energy Northwest, alleging claims of retaliation in violation of the Energy Reorganization Act, 42 U.S.C. 5851. The whistleblower retaliation provision of the Act protects energy workers who report or otherwise act upon safety concerns. In this case, plaintiff's single expression of a difference of opinion about the “Charlie” designation of one existing internal condition report lacks a sufficient nexus to a concrete, ongoing safety concern. Therefore, the court concluded that the district court properly granted summary judgment for Energy Northwest because plaintiff's conduct falls outside the scope of the Act's protection. Accordingly, the court affirmed the judgment. View "Sanders v. Energy Northwest" on Justia Law

Irish Oil & Gas, Inc. was an oil and gas exploration, production, and brokerage company. Border Resources, LLC provided landman services to clients, including acquiring leases, performing due diligence, and providing title curative work. This case involved Border's claim against Irish Oil for breach of contract for landman services Border provided to Irish Oil and Irish Oil's counterclaim against Border for breach of fiduciary duty in performing those services. Irish Oil appealed the judgment entered after a bench trial, that awarded Border damages and prejudgment interest and dismissed Irish Oil's counterclaim for breach of fiduciary duty. After review, the Supreme Court concluded the district court did not clearly err in finding Border did not breach its fiduciary duty while providing professional landman services to Irish Oil and in finding leases Border acquired for Irish Oil were sold for $1,100 per net mineral acre. Furthermore, the Court concluded the trial court did not abuse its discretion in denying Irish Oil's motion to amend its counterclaim to add individual landmen as counterclaim defendants. View "Border Resources, LLC v. Irish Oil & Gas, Inc." on Justia Law

The U.S. Department of Energy (DOE) led the effort to clean up nuclear waste at the Hanford Nuclear Site in Washington state. URS Energy & Construction, Inc. (“URS Energy”), a wholly-owned subsidiary of URS Corporation, worked as a subcontractor on the project. An employee of URS Energy brought this action alleging violations of the Energy Reorganization Act (“ERA”) whistleblower protection provision concerning the cleanup efforts. The district court dismissed the DOE from the suit and granted summary judgment in favor of URS Corp. and URS Energy. The Ninth Circuit affirmed in part and reversed in part, holding (1) the DOE and URS Corp. were correctly dismissed for lack of administrative exhaustion, but administrative exhaustion was sufficient as to URS Energy; and (2) the employee introduced sufficient evidence to create a triable issue as to whether his whistleblowing activity was a contributing factor in the adverse employment action URS Energy took against him, and there were other existing genuine issues of fact that precluded summary judgment to URS Energy. Remanded. View "Tamosaitis v. URS Inc." on Justia Law