Justia Energy, Oil & Gas Law Opinion Summaries

The companies supplied oil and gas to SemCrude on credit. After SemCrude petitioned for bankruptcy, the companies filed a complaint contending that they retained property and statutory lien rights in those commodities and asserted that their claims could not be discharged without affording them the opportunity to litigate their claims in an adversary proceeding. They were not given that opportunity. The court instead established global procedures that entitled the companies to file one representative proceeding for each state in which they supplied oil and gas. All interested parties had the right to brief, and present oral argument on, their claims. Regardless whether a company participated, however, the rulings from the representative action would be binding on it. After such proceedings, the court rejected the companies’ claims that that they retained property and statutory lien rights. Following confirmation of Semcrude’s reorganization plan, the companies appealed to the district court, which rejected their claims as equitably moot. The Third Circuit reversed. The record did not support SemCrude’s claims that granting the companies relief would collapse its plan of reorganization or undermine the justifiable reliance of third parties to their significant harm. View "In re: SemCrude LP" on Justia Law

In the 1960s Penelec and NYSEG built the Homer City coal-burning power plant in Indiana County, Pennsylvania. The Clean Air Act of 1970 subsequently charged the EPA with setting national maximum permissible levels of common pollutants, 42 U.S.C. § 7409(a)–(b). In 1990 the CAA was amended by Title V, the Operating Permit Program, which requires all major sources of air pollution to obtain operating permits. The Plant’s “grandfathered” status ended in the 1990s, when Penelec and NYSEG made changes to boilers that increased emissions of sulfur dioxide and particulate matter. Penelec and NYSEG believed the changes were “routine maintenance” and did not apply for a permit. In 1995, Penelec and NYSEG applied for a Title V operating permit; they subsequently sold the Plant to EME, which then sold to OLs, which simultaneously leased it back to EME. By 2004, the Plant had become “one of the largest air pollution sources in the nation,” and was a target of the EPA’s new enforcement initiative. In 2008 the EPA filed suit, alleging that the former owners had modified the Plant without a permit and without installing required emissions controls. The Third Circuit affirmed dismissal. The relief sought would require distortion of plain statutory text to shore up what the EPA views as an incomplete remedial scheme. View "United States v. EME Homer City Generation, L.P." on Justia Law

Plaintiffs filed suit against GenOn, on behalf of a putative class of at least 1,500 individuals who own or inhabit residential property within one mile of GenOn’s 570-megawatt coal-fired electrical generation facility in Springdale, Pennsylvania. The complaint asserted state tort law claims, based on ash and contaminants settling on plaintiffs’ property. The district court dismissed, finding that because the plant was subject to comprehensive regulation under the Clean Air Act, 42 U.S.C. 7401, it owed no extra duty to the members of the class under state tort law. The Third Circuit reversed, holding that the plain language of the Clean Air Act and controlling Supreme Court precedent indicate that state common law actions are not preempted. View "Bell v. Cheswick Generating Station, Genon Power Midwest, L.P." on Justia Law

Plaintiffs filed suit on behalf of themselves and other similarly situated landowners who used agents in an effort to lease oil and gas rights in Mercer County. When the transactions did not go as planned, plaintiffs sued an oil and gas company, Halcon, alleging breach of agreement and the duty of fair dealing. After Halcon claimed that the agents were “necessary parties,” plaintiffs decided to file direct claims against the agents, which destroyed diversity jurisdiction. Plaintiffs intended to pursue all of their claims in state court. Halcon argued that it did not oppose joining agents, agreed that the all claims would benefit from being heard in a single proceeding, but asserted that the case should proceed in federal court under the Class Action Fairness Act, 28 U.S.C. 1332(d)(2), (d)(2)(A), (d)(5)(B), because discovery had begun and there were ongoing ADR activities. The district court dismissed without prejudice. Plaintiffs filed in state court, with some changes. Halcon then removed the state court action to the same federal district court, which again remanded, citing the “home state” exception to subject matter jurisdiction under CAFA. The Third Circuit affirmed, citing CAFA’s “local controversy” exception because the case relates to Pennsylvania owners and their land. View "Vodenichar v. Halcon Energy Props., Inc." on Justia Law

Plaintiff challenged the EPA's permit allowing Shell to construct, operate, and conduct "pollutant emitting activities" associated with a drill vessel (the "Kulluk") in the Beaufort Sea off Alaska's North Slope. The court rejected Plaintiff's argument that the Environmental Appeals Board's (EAB) Decision was not entitled to Chevron deference; Section 7661c(e) of the Clean Air Act, 42 U.S.C. 7661c(e), was ambiguous, and the EPA's interpretation was reasonable under the applicable statutes' plain language; the court owed Chevron deference to the EAB Decision not to require a preconstruction increment analysis for the "Kulluk;" and the EPA permissibly granted a 500-meter exemption to the "Kulluk" from "ambient air" standards. View "Alaska Wilderness League v. EPA" on Justia Law

REX was unsuccessful in privately obtaining easements from defendants to install an interstate natural-gas pipeline authorized by the Federal Energy Regulatory Commission (FERC) under a coal mine in Ohio and had to condemn the easement, 15 U.S.C. 717f. REX built the pipeline and gas began flowing in 2009. Defendants believed that safety concerns regarding the pipeline would delay its mining permits and accelerated its mining, resulting in unanticipated costs associated with inefficient mining techniques. In valuing the easement, the district court determined that the defendants suffered no compensable damages to its coalmining operations as a result of the pipeline. The Sixth Circuit affirmed, stating that FERC found as a matter of fact that the pipeline would not compromise mining and that the two operations could co-exist. View "Rockies Express Pipeline, LLC v. 4.895 Acres of Land, More or Less" on Justia Law

Entergy, owner and operator of the Vermont Yankee Nuclear Power Station, filed suit against Vermont, raising claims challenging Vermont statutes governing Vermont Yankee (Acts 74, 160, and 189) and other claims related to Vermont's attempt to condition its grant of permission to operate Vermont Yankee on the execution of a power purchase agreement that favored Vermont retail consumers. The court affirmed the district court's grant of declaratory judgment that Act 74 and Act 160 were facially preempted by the Atomic Energy Act, 42 U.S.C. 2011-2281; reversed the district court's determination that Vermont's efforts to condition a new Certificate of Public Good for Vermont Yankee on the execution of a favorable power purchase agreement violated the dormant Commerce Clause; affirmed the district court's determination that Entergy's challenge under the Federal Power Act, 16 U.S.C. 791-828c, was unripe; affirmed the district court's grant of a permanent injunction enjoining defendants from enforcing sections 6522(c)(2) or 6522(c)(4) in title 10 of the Vermont Statutes, as enacted by Act 74, or sections 248(e)(2), 248(m), or 254 in title 30 of the Vermont Statutes, as enacted by Act 160; and vacated the district court's permanent injunction enjoining defendants from conditioning the issuance of a Certificate of Public Good on the execution of a below-wholesale-market power purchase agreement between Entergy and Vermont utilities or otherwise requiring Vermont Yankee to sell power to Vermont utilities at preferential rates.View "Entergy Nuclear Vermont Yankee v. Shumlin" on Justia Law

Petitioners and intervenors petitioned for review of FERC's orders (1) approving PJM's method of disbursing a monetary surplus that resulted from the way it operated its markets, and (2) requiring PJM to recoup money refunded to the virtual marketers in connection with the administrative dispute over the surplus. The court held that FERC gave the virtual marketers reasonable notice that their refunds were under reconsideration, but that FERC's orders were arbitrary and capricious because they were insufficiently justified. Accordingly, the court denied the petition for review of the Surplus Orders and granted the petition for review of the Recoupment Orders, remanding for further proceedings. View "Black Oak Energy, LLC v. FERC" on Justia Law

This case involved long-running multidistrict litigation concerning contamination of groundwater by the organic compound MTBE, which was used as a gasoline additive by Exxon and others. The court concluded that the state law tort verdict against Exxon was not preempted by the federal Clean Air Act, 42 U.S.C. 7401; the jury's finding that the MTBE levels in Station Six Wells will peak at 10ppb in 2033 was not inconsistent with a conclusion that the City had been injured; the City's suit was ripe because the City demonstrated a present injury and the suit was not barred by the statute of limitations; the jury's verdict finding Exxon liable under state tort law theories was not precluded by the jury's concurrent conclusion that the City had not carried its burden, in the design-defect context, of demonstrating a feasible, cost-reasonable alternative to MTBE available to satisfy the standards of the now-repealed Reformulated Gasoline Program; Exxon's demand for a retrial because of an incident of juror misconduct was unavailing; the jury properly offset the gross damages award by amounts it reasonably attributed to cleanup of contaminants other than MTBE; and the City was not entitled to a jury determination of Exxon's liability for punitive damages. Accordingly, the court affirmed the district court's judgment in its entirety. View "In re: MTBE Products Liability Litig." on Justia Law

Petitioner WildEarth Guardians challenged an Environmental Protection Agency order that denied in part its petition for an objection to a Title V operating permit issued by the Colorado Department of Public Health and Environment (CDPHE) to Intervenor Public Service Company of Colorado (d/b/a Xcel Energy), for a coal-fired power station in Morgan County, Colorado. Petitioner argued that the permit should have included a plan to bring the station into compliance with the Clean Air Act. The EPA denied Petitioner's petition for an objection despite the EPA's issuing a citation to Public Service for violating the act in 2002. The EPA concluded that Petitioner's evidence failed to demonstrate a violation, and that the state agency adequately responded to Petitioner's comments before it issued the permit. Petitioner petitioned the Tenth Circuit on appeal. The Court saw no error in the EPA's persuasive interpretation of the demonstration requirement. Furthermore, the Court concluded the agency did not act arbitrarily or capriciously in concluding that Petitioner failed to demonstrate noncompliance with the Act. Therefore the Court affirmed the EPA's order denying in part the petition to object. View "WildEarth v. EPA" on Justia Law