Justia Energy, Oil & Gas Law Opinion Summaries

Power Survey Company sought a writ of certiorari before the Supreme Court contending that the Public Utilities Commission improperly interpreted and applied the Contact Voltage Statute when it approved the portion of the Narragansett Electric Company’s (NEC) contact voltage program providing for the issuance of a request for proposal for the purpose of choosing a vendor to provide the technology for the NEC’s contact voltage testing. The Supreme Court issued the writ. Respondents, the NEC and the Division of Public Utilities and Carriers, moved to quash the writ on the grounds that it was not timely filed. The Supreme Court granted Respondents’ motions, holding that, under the facts of this case, Power Survey’s petition was untimely. View "In re Proceedings to Establish a Contact Voltage Detection & Repair Program" on Justia Law

Petitioners sought review of FERC's final rule governing what FERC calls "demand response resources in the wholesale energy market." The rule sought to incentivize retail customers to reduce electricity consumption when economically efficient. The court concluded that, because FERC's rule entails direct regulation of the retail market - a matter exclusively within state control - it exceeds the Commission's authority. Alternatively, even if the court assumed that FERC had statutory authority to execute the final rule, Order 745 would still fail because it was arbitrary and capricious. Given Order 745's regulation of the retail market, the court vacated the rule in its entirety as ultra vires agency action. Accordingly, the court vacated and remanded the rulings. View "Electric Power Supply Assoc. v. FERC" on Justia Law

The Energy Policy Act of 2005 directs the Department of Energy (DOE) to fund alternative energy projects called “biorefinery demonstration projects,” 42 U.S.C. 16232(d), to develop ways to convert trees, crops and agricultural waste into energy. Frontier sought a grant to construct a plant in Michigan’s Upper Peninsula that would use about 770 tons of wood chips per day to produce 20 million gallons of ethanol per year. As required by the National Environmental Policy Act (NEPA), DOE prepared a draft environmental assessment. After receiving input, DOE issued a final environmental assessment that proposed changes, including use of a biomass boiler instead of natural gas boilers to generate power for the plant. DOE issued a finding of “no significant impact” and awarded $100 million toward construction of the plant, about 34% of its total cost. Opponents sued, alleging violation of the NEPA. The district court held that the plaintiffs lacked standing and that the claims also failed on the merits. The Sixth Circuit reversed with respect to standing, holding that the opponents did show injury subject to redress, but affirmed on the merits, stating that DOE completed a thorough environmental assessment and reasonably described the environmental impacts identified as not significant. View "Klein v. U.S. Dep't of Energy" on Justia Law

Defendant-Appellant Enerlex, Inc. offered to purchase plaintiffs'-appellees' mineral interest. At the time, plaintiffs did not know that their Seminole County mineral interests were included in a pooling order or that proceeds had accrued under the pooling order. Defendant admitted it knew about the pooling order and the accrued proceeds but did not disclose these facts in making the purchase offer. Plaintiffs signed the mineral deeds which defendant provided and subsequently discovered the pooling order, the production, and the accrued proceeds. Plaintiffs sued for rescission and damages, alleging misrepresentation, deceit and fraud. The district court entered summary judgment in favor of plaintiffs. The Court of Civil Appeals reversed the summary judgment. After its review, the Supreme Court concluded defendant obtained the mineral deeds from plaintiffs by false representation and suppression of the whole truth. Defendant was therefore liable to plaintiffs for constructive fraud. Rescission was the appropriate remedy for defendant's misrepresentation and constructive fraud. Therefore, the Court reversed the appellate court and reinstated the district court's judgment. View "Widner v. Enerlex, Inc." on Justia Law

Prairie Land Electric Cooperative, Inc. (Prairie Land), which purchases wholesale electricity from various suppliers and distributes that electricity to retail customers, entered into temporally overlapping, long-term all-requirements contracts with two different wholesale electricity suppliers, Sunflower Electric Power Corporation (Sunflower) and Kansas Electric Power Cooperative, Inc. (KEPCo). After a dispute arose regarding which supplier had the right to serve a certain pumping station delivery point, Prairie Land filed a petition for declaratory judgment asking the district court to determine which supplier was entitled to serve the new delivery point. The district court ruled in favor of Sunflower, which entered into the first all-requirements contract with Prairie Land. The court of appeals reversed. The Supreme Court reversed the court of appeals’ decision and affirmed the district court’s judgment, holding that under the facts of this case, Prairie Land must meet its obligations under its contract with Sunflower, the first supplier, before it may comply with any obligations under its contract with KEPCo, the second supplier. View "Prairie Land Elec. Coop., Inc. v. Kan. Elec. Power Coop., Inc." on Justia Law

Plaintiffs filed suit seeking a declaratory judgment quieting title to an interest in the Bakken formation that Phillip Armstrong purchased from Berco. Armstrong also filed suit against Encore for breaching a Letter Offer and for trespassing on, and converting the oil and gas attributable to, Armstrong's interest. Berco counterclaimed. The court affirmed the dismissal of Armstrong's quiet-title claim, based on the district court's conclusion that the Purchase Agreement and Assignment, taken together, conveyed to Armstrong a wellbore-only assignment; Armstrong's trespass claim was properly dismissed because Armstrong did not assert that Encore interfered with his use of the two wellbores; Armstrong's conversion claim was properly dismissed because Armstrong has an interest in only the Thompson and Yttredahl wellbores, the equipment associated with those wellbores, and the production through those two wellbores; the breach of contract claim was properly dismissed because Armstrong had no leasehold interest to transfer and thus could not comply with the Letter Offer; and the district court correctly ruled that Armstrong's unilateral alteration of Exhibit A before recording it rendered the recorded Assignment null and void. Accordingly, the court affirmed the judgment of the district court. View "Armstrong, et al. v. Berco Resources, LLC, et al." on Justia Law

First Tennessee and members of the Gregg family filed suit against Pathfinders and its assignees for breaching an oil and gas lease. The district court granted summary judgment in favor of Pathfinder, finding the case analagous to Frein v. Windsor Weeping Mary, LP. The court concluded, as in Frein, the best evidence of Arkansas law, that a large-up front payment with a surrender clause creates an option to cancel the lease, which Pathfinder exercised. Accordingly, the court affirmed the judgment of the district court. View "First Tennessee Bank Nat'l Assoc., et al. v. Pathfinder Exploration, et al." on Justia Law

Appellant, a coal mine operator, filed suit against the Secretary, challenging a Department of the Interior regulation requiring mine operators to pay a reclamation fee when the coal is ultimately sold or used, rather than immediately after the coal is removed from the ground. Appellant argued that the regulation could not be constitutionally applied to coal sold for export because the Export Clause of the Constitution states that "No Tax or Duty shall be laid on Articles exported from any state." U.S. Const. Art. I. 9, cl.5. Section 1276 of the Surface Mining Control and Reclamation Act, 30 U.S.C. 1276(a)(1) explicitly provides that all challenges to regulations promulgated under the Act must be brought within sixty days of a rule's promulgation. The court concluded that section 1276 was applicable in this case and the court agreed with the district court that appellant's challenge was untimely. Accordingly, the court affirmed the judgment of the district court. View "Coal River Energy, LLC v. Jewell, et al." on Justia Law

In consolidated appeals, the issue before the Supreme Court concerned the attorney’s fees and costs awarded in the 2006 Trans-Alaska Pipeline System tax assessment case. The superior court decided that the Fairbanks North Star Borough, the City of Valdez, and the North Slope Borough were prevailing parties for purposes of attorney’s fees and costs because they had prevailed on the main issues of the case. The superior court also applied the enhancement factors to raise the presumptive award from 30 percent to 45 percent of the prevailing parties’ reasonable attorney’s fees. The owners of the Trans-Alaska Pipeline System appealed, arguing the superior court should have applied Alaska Appellate Rule 508 instead of Civil Rules 79 and 82. In the alternative, they contended: (1) that the three municipalities did not prevail as against the owners; (2) that fees should have been allocated between separate appeals; (3) that none of the prevailing parties were entitled to enhanced attorney’s fees; and (4) that the Fairbanks North Star Borough’s award should have been reduced as recommended by a special master. The Fairbanks North Star Borough and the City of Valdez cross-appealed, arguing that the superior court should have viewed this case as one involving a money judgment for purposes of an attorney’s fees award under Rule 82(b)(1) and, in the alternative, that they were entitled to a greater enhancement of their fees. Finding no reversible error, the Supreme Court affirmed. View "BP Pipelines (Alaska) Inc. v. Alaska, Dept. of Revenue" on Justia Law

Lightning strikes and animal contacts can cause wires of the power grid to short. Such “low voltage events” can damage wind turbines, which previously disconnected from the grid during a low voltage event. As wind began providing a greater percentage of overall power, utilities began to require low voltage ride-through. GE’s 985 patent, directed to controlling components of a wind turbine that would allow it to remain connected to the grid and to safely ride through a low voltage event, names five co-inventors who were based in Germany. Wilkins is not named. Wilkins was involved in adapting wind turbines to meet certain requirements in the U.S. The German team consulted Wilkins for confirmation that their invention would work with U.S. grid. Wilkins left GE in 2002. The 985 patent is asserted by GE against Mitsubishi in several lawsuits. Mitsubishi challenged the validity of the patent and hired Wilkins, who worked 1,000 hours in an effort to invalidate the 985 patent. Mitsubishi also argued that the patent was unenforceable because GE intentionally failed to name Wilkins as a co-inventor. The administrative law judge found that Wilkins had co-invented the patent but that GE did not intend to deceive the PTO. Later, Wilkins asserted ownership rights in the 985 patent and another patent. Wilkins entered into additional agreements with Mitsubishi and was paid more than $1.5 million. GE sought to quiet title to the patents. Wilkins counterclaimed. After refusing to take an unqualified oath to tell the truth at his deposition, behavior that the court deemed “not acceptable,” Wilkins filed a declaration calling the court “ignorant.” The district court dismissed GE’s ownership claims as time-barred and held that Wilkins and Mitsubishi failed to establish that Wilkins co-invented any claim of the 985 patent. The Federal Circuit affirmed, noting that Wilkins had filed additional claims for malicious prosecution and abuse of process against GE and its counsel. View "Gen. Elec. Co. v. Wilkins" on Justia Law