Justia Energy, Oil & Gas Law Opinion Summaries

In 1999, Christopher Sullivan learned through a business acquaintance, Robert Weaver, acquired all interests in a particular oil and gas lease. The then-current operators of the wells on the lease, QEP Energy, made regular payments to Mr. Sullivan for several years. In early 2006 QEP determined that the total payments to Mr. Sullivan by all operators on the lease exceeded his interest in the leases. QEP therefore ceased further payments and sought reimbursement of the overpayment from Mr. Sullivan. He disputed the claim, asserting that QEP owed him additional payments. QEP brought this action in Utah state court, seeking a declaration of the amounts due Mr. Sullivan. It also sought recovery from Mr. Sullivan for the alleged overpayment. Both parties filed motions for partial summary judgment on their claims for declaratory relief. The district court held that the terms of Mr. Sullivan's interest (from when he acquired the original interest in the lease) unambiguously described he should have only received a three percent production-payment. The court granted partial summary judgment in favor of QEP, and dismissed Mr. Sullivan's claims with prejudice. Mr. Sullivan appealed. Upon review, the Tenth Circuit agreed with the district court's analysis of the leases in question and affirmed its decision in favor of QEP. View "QEP Energy Company v. Sullivan" on Justia Law

The Office of Surface Mining Reclamation and Enforcement (OSM) approved an application by BHP Navajo Coal Company (BNCC) to revise the mining plan at its Navajo Mine. Dine Citizens Against Ruining Our Environment and San Juan Citizens Alliance (collectively Citizens) sought the Tenth’s Circuit’s review of the application under the Administrative Procedures Act (APA). The Navajo Mine is a large open pit coal mine on tribal reservation lands in northwestern New Mexico. BNCC operates the mine under a long-standing lease with the Navajo Nation and a surface coal mining permit issued by OSM. In October 2005, after performing an Environmental Analysis (2005 EA) and making a finding of no significant impact (FONSI), OSM approved the application. In July 2007, Citizens filed this case. BNCC intervened. The district court concluded OSM’s approval of BNCC’s application was the type of action which normally requires preparation of an Environmental Impact Statement (EIS) under NEPA rather than the less comprehensive Environmental Assessment. The court then turned to the 2005 EA and concluded it was deficient in several respects. It remanded the matter to OSM to correct the deficiencies and reassess its FONSI. OSM and BNCC appealed the court’s decision. OSM later dismissed its appeal, but BNCC attacked the district court’s decision on all fronts. Citizens claimed there was no final, appealable, order under 28 U.S.C. 1291 because the district court remanded the case to OSM for further proceedings. Upon review, the Tenth Circuit agreed that there was no appealable order issued by the district court and dismissed the OSM’s and BNCC’s appeals. View "Dine Citizens Against Ruining the Environment v. Klein" on Justia Law

The City of Newkirk and Kay Electric Cooperative both provide electricity to Oklahoma consumers. "When a city acts as a market participant it generally has to play by the same rules as everyone else. It can't abuse its monopoly power or conspire to suppress competition. Except sometimes it can. If the city can show that its parent state authorized it to upend normal competition [. . . ] the city enjoys immunity from federal antitrust liability. The problem for the City of Newkirk in this case is that the state has done no such thing." Kay sued Newkirk alleging that the City engaged in unlawful tying and attempted monopolization in violation of the Sherman Act, 15 U.S.C. 1,2. The district court refused to allow the case to proceed, granting Newkirk's motion to dismiss after it found the City "immune" from liability as a matter of law. Upon review, the Tenth Circuit found that the state did not authorize Newkirk to enter the local electricity market as it did in this case. The Court reversed the district court and remanded the case for further proceedings. View "Kay Electric Cooperative v. City of Newkirk" on Justia Law

Plaintiff-Appellant Sierra Club filed a petition with the Tenth Circuit in an attempt to stop Defendant-Appellee Two Elk Generation Partners, LP (Two Elk) from building a coal-fired power plant in Wyoming. Sierra Club argued that Two Elk was building the plant in violation of the Clean Air Act, 42 U.S.C. 7604. For over ten years, Two Elk had planned to build the power plant, and filed the appropriate applications with the local environmental authorities to receive permission to start construction. In late 2007, state authorities notified Two Elk that its environmental permit had expired. In the process of getting the permit renewed, Sierra Club tried to intervene to stop the process. While Two Elk and Sierra Club were fighting one another in the state administrative bodies and courts, Sierra Club filed a citizen suit with the federal district court. The federal district court dismissed Sierra Club's case, holding that the state courts already decided the same issues in its suit. On appeal to the Tenth Circuit, Sierra Club argued that it was not a party to the permit-application proceedings, and that it should not be precluded from bringing suit now. Furthermore, the Club argued that the Clean Air Act established the circumstances under which a citizen suit may be brought, and those circumstances were not met at the state court level. Upon careful consideration of the arguments and the applicable legal authority, the Tenth Circuit affirmed the lower court's decision. The Court found that Sierra Club's arguments under the Clean Air Act were indeed precluded by decisions from the state court proceedings. The Court dismissed Sierra Club's appeal.

Appellants challenged a district courtâs discovery order that directed them to disclose what they called privileged information. To achieve this end, the Appellants filed an interlocutory appeal and a petition for writ of mandamus with the Tenth Circuit. The Appellants in this case include motor fuel retailers and the retail motor fuel trade associations to which the retailers belong. The Plaintiffs in this case are consumers and other interested parties. Collectively they filed twelve putative class action cases in seven federal district courts. The Plaintiffs alleged that the retailersâ âvolumetric pricing systemâ for retail motor fuel overcharges customers. When the temperature of the fuel rises, the fuelâs volume expands, but the actual energy content stays the same â customers pay for âmoreâ fuel but half the energy. Plaintiffs allege that the temperature fluctuations and fuel volumes are accounted for in every aspect of the Appellantsâ âvolumetric pricing systemâ except at the retail level, thus overcharging retail customers. The Tenth Circuit held that Appellants devoted a majority of their appellate brief to their contention that a First Amendment privilege should be presumed with respect to the information Plaintiffs sought to discover. However, Appellants made an âunwise strategic decisionâ by seeking a presumption when they failed to prove the information was indeed privileged. The Court dismissed Appellantsâ interlocutory appeal and denied their application for writ of mandamus.