Justia Energy, Oil & Gas Law Opinion Summaries

The Natural Gas Act authorizes private entities who have received a certificate of public convenience and necessity to acquire property “by the exercise of the right of eminent domain.” Sabal Trail Transmission, LLC, invoked this power of eminent domain to acquire easements to build a pipeline on land owned by Sunderman Groves, Inc. In the condemnation proceeding, the district court determined that the Act incorporates state eminent domain law, and it consequently applied Florida law to grant attorneys’ fees, costs, and prejudgment interest to Sunderman Groves. Sabal Trail appealed these awards, arguing that the district court should have applied federal law instead. A different panel decided on a nearly identical case that arose out of Sabal Trail’s use of eminent domain power to build this same pipeline.   The Fourth Circuit affirmed. The court explained that it is firmly established” that “each succeeding panel is bound by the holding of the first panel to address an issue of law, unless and until that holding is overruled en banc, or by the Supreme Court.” United States v. Hogan, 986 F.2d 1364, 1369 (11th Cir. 1993). The court explained that the court’s prior construction of the Natural Gas Act is now the law in the Circuit, and it conclusively resolves this appeal. View "Sabal Trail Transmission, LLC v. Sunderman Groves, Inc" on Justia Law

Plaintiff alleged that toxic chemicals used during the carpet manufacturing process have been allowed to seep into the rivers that supply drinking water to communities near Dalton, including Rome, Georgia and the rest of Floyd County. On behalf of himself and a proposed class of water subscribers and ratepayers, he sued Dalton Utilities, a municipal corporation that operates Dalton’s wastewater treatment system, for violating the Clean Water Act and for creating a public nuisance. His lawsuit claims that Dalton Utilities has caused the City of Rome’s domestic water supply to be contaminated with dangerously high levels of toxic chemicals.   The question before the Eleventh Circuit was whether Dalton Utilities is entitled to municipal immunity from Plaintiff’s nuisance abatement (injunctive relief) claim. The Eleventh Circuit denied Plaintiff’s motion to dismiss Dalton Utilities’ appeal for lack of jurisdiction. However, the court affirmed district court’s order denying Dalton Utilities’ motion to dismiss Plaintiff’s nuisance abatement claim on municipal immunity grounds. The court explained that at oral argument counsel for Dalton Utilities conceded that if Phillips is still good law, Plaintiff has properly alleged a Phillips kind of nuisance claim for personal injury. The court agreed and held that municipal immunity does not shield Dalton Utilities from Plaintiff’s nuisance abatement claim. View "Jarrod Johnson v. Water, Light, and Sinking Fund Commission of City of Dalton" on Justia Law

Sabal Trail brought a condemnation action to acquire permanent and temporary easements that would allow it to build and operate a portion of the pipeline on property owned by Sunderman Groves. The jury awarded Sunderman Groves $309,500 as compensation for the easements, and the district court entered a final judgment providing that as part of the compensation award, Sunderman Groves was entitled to recover its attorney's fees and costs in an amount to be set by the court.The Eleventh Circuit held that the district court did not abuse its discretion in allowing Sunderman Groves to testify about the value of the property and the court lacked jurisdiction to review whether Sunderman Groves was entitled to attorney's fees and costs. Accordingly, the court affirmed in part and dismissed in part. View "Sabal Trail Transmission, LLC v. 3.921 Acres of Land in Lake County Florida" on Justia Law

A district court may, in appropriate circumstances, issue a preliminary injunction granting a pipeline company immediate access to property that it has an established right to condemn under the Natural Gas Act. Transcontinental filed consolidated condemnation proceedings against property owners in order to obtain an easement for the construction of a natural gas pipeline. The Eleventh Circuit affirmed the district court's grant of summary judgment for Transcontinental on the issue of whether it had a right to condemn certain portions of defendants' properties under Section 7(h) of the Natural Gas Act. The court held that the district court did not err in concluding that there was no genuine issue of material fact as to whether Transcontinental held a valid certificate of public convenience and necessity; the property to be condemned was necessary for the natural-gas pipeline authorized by the certificate; and Transcontinental could not acquire the necessary easements by contract.The court also affirmed the district court's issuance of a preliminary injunction allowing Transcontinental to immediately enter defendants' properties and begin construction. The court held that the district court did not abuse its discretion in requiring Transcontinental to post a surety bond rather than a cash deposit. View "Transcontinental Gas Pipe Line Co., LLC v. Cochran" on Justia Law

Plaintiffs filed a putative class action claiming that two provisions of the Florida Renewable Technologies and Energy Efficiency Act, which authorized the Nuclear Cost Recovery System (NCRS), were invalid under the Dormant Commerce Clause (DCC). Plaintiffs also claimed that the two provisions of the Act were preempted by the Atomic Energy Act of 1954, and the Energy Policy Act of 2005. The Eleventh Circuit affirmed the dismissal of the DCC claim under Federal Rule of Civil Procedure 12(b)(6), because plaintiffs' interests as Florida electric utility customers were well beyond the zone the DCC was meant to protect. The court held that the Atomic Energy Act did not preempt the NCRS, and the district court did not abuse its discretion in denying plaintiffs leave to amend. View "Newton v. Duke Energy Florida, LLC" on Justia Law

The Eleventh Circuit denied a petition for review of the Commission's decision to revoke petitioner's license to generate hydroelectricity at the Juliette Dam. The court held that the Commission was authorized to revoke petitioner's license under section 823b of the Federal Power Act, 16 U.S.C. 823b, because petitioner violated a compliance order by never submitting effectiveness protocols or documentation of its consultation with the Resource Agencies and substantial evidence supported the Commission's conclusion that the violation was done knowingly. Furthermore, the record showed that petitioner was given adequate notice and opportunity to be heard and that the Commission took into consideration the nature and seriousness of petitioner's violation and its compliance efforts. The court rejected petitioner's remaining arguments. View "Eastern Hydroelectric Corp. v. Federal Energy Regulatory Commission" on Justia Law