Justia Energy, Oil & Gas Law Opinion Summaries

Environmental groups challenged the Bureau of Land Management’s (BLM) approval of the Willow Project, an oil and gas venture in Alaska's northern Arctic. BLM approved the project in 2023, allowing ConocoPhillips Alaska, Inc. to construct oil and gas infrastructure in the National Petroleum Reserve. BLM prepared a Supplemental Environmental Impact Statement (SEIS) after a 2021 remand by the district court, which required BLM to reassess its alternatives analysis. BLM insisted on a full field development standard to avoid piecemeal development, which led to the exclusion of certain environmentally protective alternatives.The United States District Court for the District of Alaska granted summary judgment in favor of BLM, dismissing the plaintiffs' claims under the National Environmental Policy Act (NEPA), the Alaska National Interest Lands Conservation Act (ANILCA), the Naval Petroleum Reserves Production Act (Reserves Act), and the Endangered Species Act (ESA). The district court found that BLM had rectified the errors identified in its 2021 order and that the alternatives analysis satisfied NEPA, the Reserves Act, and ANILCA. The court also held that the plaintiffs had standing but had not shown that the defendants violated the ESA.The United States Court of Appeals for the Ninth Circuit affirmed in part and reversed in part the district court’s decision. The court held that BLM did not abuse its discretion in using the full field development standard to avoid the risks of piecemeal development. However, BLM’s final approval of the project was arbitrary and capricious under the Administrative Procedure Act (APA) because it did not provide a reasoned explanation for potentially deviating from the full field development standard. The court also held that BLM’s assessment of downstream emissions complied with NEPA and that BLM did not act arbitrarily in selecting mitigation measures under the Reserves Act. The court found that BLM complied with ANILCA’s procedural requirements and that the ESA consultation was not arbitrary or capricious. The court remanded the NEPA claim without vacatur, allowing BLM to provide a reasoned explanation for its decision. View "SOVEREIGN INUPIAT FOR A LIVING ARCTIC V. UNITED STATES BUREAU OF LAND MANAGEMENT" on Justia Law

This petition for review returned to a long series of administrative cases arising out of the California energy crisis of 2000 and 2001 all centering on whether the Federal Energy Regulatory Commission (“FERC” or “Commission”) acted arbitrarily or capriciously in calculating certain refunds. FERC that FERC had acted outside its jurisdiction when ordering governmental entities/non-public utilities to pay refunds, the Commission vacated each of its orders in the California refund proceeding to the extent that they ordered governmental entities/nonpublic utilities to pay refunds. In sum, although the tariffs were not specific, the Ninth Circuit could not concluded FERC acted arbitrarily or capriciously in its construction of the tariffs. View "California Pub. Util. Comm'n v. Federal Energy Reg. Comm'n" on Justia Law

Petitioners seek review of FERC's determination that various energy companies committed tariff violations in California during the summer of 2000. As part of a deregulation program, California created two nonprofit entities: the California Power Exchange Corporation (“CalPX”) and the California Independent System Operator Corporation (“Cal-ISO”). Both entities were subject to FERC jurisdiction, with CalPX operating pursuant to a FERC-approved tariff and wholesale rate schedule. The Cal-ISO tariff comprehensively regulated California’s power markets, and incorporated the Market Monitoring and Information Protocol (“MMIP”), which set forth rules for identifying and protecting against abuses of market power. The court concluded that FERC’s determination that Shell, MPS, and Illinova (“sellers”) violated the Cal-ISO tariff and MMIP during the Summer Period was not arbitrary, capricious, or an abuse of discretion. In this case, FERC reasonably interpreted the Cal-ISO tariff and the MMIP according to the plain text of those documents. Therefore, the court rejected the sellers’ claims that the tariff and MMIP did not proscribe the practices identified by the agency. Furthermore, FERC’s interpretation of the Cal-ISO tariff and the MMIP finds support not only in text, but in policy as well. The court concluded that FERC reasonably interpreted the Cal-ISO tariff and the MMIP to prohibit the practices of False Export, False Load Scheduling and Anomalous Bidding. In addition, the agency reasonably concluded that the tariff and MMIP sufficed to put sellers on notice that such practices were not permitted. The court also concluded that FERC reasonably concluded that the sellers engaged during the Summer Period in the practices deemed tariff violations by the orders on review. Finally, the court concluded that FERC’s Summer Period determinations regarding APX and BP were not arbitrary, capricious, or an abuse of discretion. Accordingly, the court denied the petitions for review in part and dismissed in part. View "MPS Merchant Serv. v. FERC" 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

Petitioners challenged several FERC orders that were issued following the court's remand in Port of Seattle v. FERC. The key issue on appeal is the applicability of the Mobile-Sierra doctrine, which requires FERC to “presume that the rate set out in a freely negotiated wholesale-energy contract meets the ‘just and reasonable’ requirement” imposed by law. The court concluded that it has jurisdiction only as to the issue of whether FERC erred by invoking the Mobile-Sierra doctrine and that it lacks jurisdiction to review FERC’s evidentiary orders. The court held that FERC reasonably applied Mobile-Sierra to the class of contracts at issue and that FERC's interpretation is reasonable. In this case, FERC’s baseline assumption that the presumption applies to the contracts at issue is not unreasonable in light of Morgan Stanley Capital Grp., Inc. v. Pub. Util. Dist. No. 1. Accordingly, the court denied the petition with respect to petitioners' claim that the Mobile-Sierra presumption cannot apply to the spot sales at issue and dismissed the evidentiary challenges for lack of jurisdiction. View "State of California v. FERC" on Justia Law