Justia Energy, Oil & Gas Law Opinion SummariesArticles Posted in Massachusetts Supreme Judicial Court
Energy Express, Inc. v. Department of Public Utilities
In this case concerning the distribution of natural gas to consumers, the Supreme Judicial Court accepted the conclusion of the Department of Public Utilities that only an end consumer, and not a marketer - or a private company - is entitled to a refund under Mass. Gen. Laws ch. 164, 94F. Specifically at issue was whether the assignment of pipeline capacity by a local distribution company (LDC) to a marketer caused the marketer to become a customer of the LDC such that it was entitled a share of that refund. Here, a pipeline was ordered by FERC to issue a refund. Because Bay State, an LDC, was the contracting party with the pipeline, Bay State received the full refund. The Department ordered Bay State to issue a refund to its customers, which it did. Energy Express, a marketer, intervened, arguing that it should receive a proportional share of the refund directly. The Department rejected Energy Express’s position. The Supreme Judicial Court affirmed, holding (1) the Department reasonably interpreted “customer” as used in section 94F to include only those entitles that consume the natural gas provided or transported by Bay State, which interpretation did not include Energy Express; and (2) therefore, Energy Express was not entitled to a refund. View "Energy Express, Inc. v. Department of Public Utilities" on Justia Law
Peterborough Oil Co., LLC v. Dep’t of Envtl. Prot.
Department of Environmental Protection (DEP) regulations require that those deemed to be liable after a spill of hazardous materials within a specified radius of a public water supply undertake cleanup and monitoring to ensure the spill does not pose a danger to that water supply, 310 Code Mass. Regs. 40.0801, 40.0810, 40.0993(3)(a), 40.1030(2)(e). A 2007 modification exempts "oil" from some requirements when specific conditions are met, 310 Code Mass. Regs. 40.0924(2)(b)(3)(a). Peterborough owns a now-vacant Athol property, within a protection area, where it operated a gasoline station for more than 10 years. In 1994, a release of leaded gasoline from a subterranean gasoline storage tank was detected in soil on the site. DEP required Peterborough to undertake supervised cleanup and monitoring activities. In 2008, after the oil exemption was established, Peterborough submitted a revised plan, stating that further remediation was not required because the entirety of the spill fell within the exemption's definition of "oil." DEP responded that the meaning of "oil" in the exemption does not include gasoline additives such as lead, but refers only to petroleum hydrocarbons naturally occurring in oils, so that a spill of leaded gasoline could not be completely excluded from further remediation. The trial court, on summary judgment, and the Massachusetts Supreme Judicial Court, upheld the DEP interpretation of the regulation as reasonable. View "Peterborough Oil Co., LLC v. Dep't of Envtl. Prot." on Justia Law