Justia Energy, Oil & Gas Law Opinion Summaries

Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203, 124 Stat. 1376, the SEC promulgated a rule requiring certain companies to disclose payments made to foreign governments relating to the commercial development of oil, natural gas, or minerals. Petitioners challenged the statute and the regulation, raising constitutional and statutory claims. The court dismissed the petition for review for lack of jurisdiction. Because petitioners have simultaneously filed a complaint in the district court, the court need not consider transferring the petition to that court. Additionally, the court's dismissal of the petition was without prejudice to petitioners' suit in the district court. View "American Petroleum Institute, et al v. SEC" on Justia Law

Under the Federal Mine Safety & Health Act of 1977, the Secretary of Labor protects the health and safety of miners, acting through the Federal Mine Safety and Health Administration (MSHA). Regulations under the Act require mine operators to report all mine-related injuries and illnesses suffered by employees. In 2010, MSHA acted on a new and broader interpretation and informed 39 mine operators that they would be required to permit MSHA inspectors to review employee medical and personnel records during inspections. Two operators refused to provide the records. MSHA issued citations and imposed penalties. An ALJ and the Review Commission found that the demands and enforcement were lawful under 30 U.S.C. 813(h) and 30 C.F.R. 50.41. Mine employees intervened to raise personal privacy challenges. The Seventh Circuit denied a petition for review, rejecting arguments that MSHA does not have authority for the requirement; that 30 C.F.R. 50.41 is not a reasonable interpretation of the Act and was not properly promulgated; that the requirement infringes operators’ Fourth Amendment right not to be searched without a warrant; that the demands violate the miners’ Fourth Amendment privacy rights in their medical records; and that penalties imposed for noncompliance violate the operators’ Fifth Amendment due process rights. View "Bickett v. Fed. Mine Safety & Review Comm'n" on Justia Law

Mingo Logan applied to the Corps for a permit under section 404 of the Clean Water Act (CWA), 33 U.S.C. 1344, to discharge dredged or fill material from a mountain-top coal mine in West Virginia into three streams and their tributaries. The Corps issued the permit to Mingo Logan, approving the requested disposal sites for the discharged materials. Four years later, the EPA invoked its subsection 404(c) authority to "withdraw" the specifications of two of the streams as disposal sites, thereby prohibiting Mingo Logan from discharging them. Mingo Logan then filed this action challenging the EPA's withdrawal of the specified sites. The court reversed the district court's grant of summary judgment to Mingo Logan and concluded that the EPA had post-permit withdrawal authority. Accordingly, the court remanded for further proceedings. View "Mingo Logan Coal Co. v. EPA" on Justia Law

Defenders sued the EPA based on the EPA's alleged failure to promptly promulgate revisions to certain effluent limitations and effluent limitations guidelines under the Clean Water Act (CWA), 33 U.S.C. 1251 et seq. UWAG, an association of energy companies and three national trade associations of energy companies, appealed the denial of intervention and also asserted that the court should vacate the district court's order entering a consent decree between Defenders and the EPA because the district court lacked subject matter jurisdiction. The court affirmed the denial of intervention because UWAG lacked Article III standing and, as there was no appellant with standing, dismissed the remainder of the appeal. View "Defenders of Wildlife, et al v. Jackson" on Justia Law

In 2007, the Army Corps of Engineers issued two nationwide general permits that authorized surface and underground coalmining operations to discharge dredged and fill material into waters of the United States. The Corps conducted a public notice-and-comment period and completed a cumulative-impacts analysis that projected the permits’ respective environmental impacts before determining that compensatory mitigation would reduce adverse impacts to a minimal level. The Corps disclosed its analyses and findings in each permit’s Environmental Assessment in lieu of an environmental impact statement. Riverkeeper sued, alleging violations of the Clean Water Act, 33 U.S.C. 1344(e), the National Environmental Protection Act, 42 U.S.C. 4332(2)(C), and the Administrative Procedure Act, 5 U.S.C. 706, during the Corps’ issuance of two nationwide coal-mining waste-discharge permits in 2007. The district court granted summary judgment to the Corps. During Riverkeeper’s appeal, the permits at issue expired. The Sixth Circuit concluded that the case remains in controversy and reversed in part. Although the Corps repeatedly objected to the feasibility of Riverkeeper’s demands, in taking the “easier path” of preparing an environmental assessment instead of an environmental impact statement the Corps failed to follow CWA and NEPA regulations by documenting its assessment of environmental impacts and examining past impacts. View "KY Riverkeeper, Inc. v. Rowlette" on Justia Law

Seven affiliated debtors are entities that conducted deep and strip coal mining and operated coal prep plants and loading facilities in three states. The bankruptcy court authorized joint procedural administration, but not substantive consolidation. The administrative expense claims at issue arise from environmental damage. The land and the coal were subject to leases that terminated before commencement of bankruptcy proceedings. The West Virginia Department of Environmental Protection (WVDEP) issued mining permits and National Pollutant Discharge Elimination System permits to the debtors and affiliated entities for the operations. The bankruptcy court denied WVDEP’s application for administrative expenses against two debtors. The Sixth Circuit Bankruptcy Appellate Panel held that the court failed to properly analyze the debtors’ potential liability for reclamation obligations associated with permits owned by their affiliate. WVDEP’s administrative expense claims were properly denied to the extent they were based on derivative liability for the debts of the affiliate, either based on veil piercing or substantive consolidation. The court abused its discretion in denying the claims that were based on direct liability for reclamation obligations associated with the permits owned by the affiliate and in denying claims that were independent of the threshold question of joint and several liability for reclamation obligations associated with the permits owned by an affiliate. View "In re: Appalachian Fuels, LLC" on Justia Law

These cases arose out of the energy crisis of 2000-2002. Plaintiffs, retail buyers of natural gas, alleged that defendants, natural gas traders, manipulated the price of natural gas by reporting false information to price indices published by trade publications and engaging in wash sales. The court held that the Natural Gas Act (NGA), 15 U.S.C. 717 et seq., did not preempt plaintiffs' state antitrust claims, and reversed the district court's order granting summary judgment to defendants. The 2003 enactment of FERC's Code of Conduct did not affect the court's conclusion that the NGA did not grant FERC jurisdiction over claims arising out of false price reporting and other anticompetitive behavior associated with nonjurisdictional sales. The court found that the district court did not abuse its discretion in denying the Heartland Plaintiffs' motion for leave to amend to add a treble damages state law claim and therefore affirmed the district court's order denying that motion. The court reversed the district court's order dismissing the AEP Defendants from the Wisconsin Arandell case for lack of personal jurisdiction. Because the court agreed with the district court's conclusion that the plain text of Wisconsin Statutes 133.14 allowed recovery only by plaintiffs who were direct purchasers under the voided contract, the court affirmed the district court's order granting partial summary judgment to DETM. View "In re: Western States Antitrust Litig." on Justia Law

In 1983, the Nuclear Waste Policy Act established a plan for spent nuclear fuel (SNF) generated by nuclear power plants, 42 U.S.C. 10101–10270. The Act made utilities responsible for SNF storage until the U.S. Department of Energy (DOE) accepts the material. The Secretary of Energy entered into contracts with nuclear utilities to accept SNF in return for payment of fees. The Act provided that the Nuclear Regulatory Commission “shall not issue or renew a license” to any nuclear utility unless the utility has entered into a contract with DOE or DOE certifies ongoing negotiations. Nuclear utilities, including the owner of the Entergy nuclear power stations, entered into contracts and began making payments, which have continued. By 1994, DOE knew it would be unable to accept SNF by the Act’s January 31, 1998 deadline. In 1995, DOE issued a “Final Interpretation” that took the position that it did not have an unconditional obligation to begin performance on that date. Entergy sued, asserting that DOE’s partial breach caused it to incur additional costs for SNF storage. The claims court struck an unavoidable delay defense, based on a prior decision rejecting DOE’s argument that its failure was “unavoidable” under the contract. The Federal Circuit affirmed. View "Entergy Nuclear Fitzpatrick, LLC v. United States" on Justia Law

The Clean Air Act New Source Review program forbids construction of new pollution sources without a permit, 42 U.S.C. 7475. Operators of major pollutant-emitting sources who plan construction must make a preconstruction projection of the increase in emissions following construction, to determine whether the project constitutes a “major modification,” requiring a permit. DTE planned on replacing 2,000 square feet of tubing, the economizer, and large sections of reheater piping; installing a new nine-ton device that provides voltage that creates the electromagnetic field needed for the rotor to produce electricity; and refurbishing boiler feedwater pumps at its power plant. The project required 83 days and $65 million. DTE performed required calculations and projected an emissions increase of 3,701 tons per year of sulfur dioxide and 4,096 tons per year of nitrogen oxides. Under the regulations, an increase of 40 tons per year of either substance is significant. DTE determined that the increase fell under the demand growth exclusion. The Michigan Department of Environmental Quality took no action and construction began. The U.S. EPA filed notice of violation. The district court granted DTE summary judgment. The Sixth Circuit reversed. While the regulations allow operators to undertake projects without having EPA second-guess their projections, EPA is not categorically prevented from challenging blatant violations until after modifications are made. View "United States v. DTE Energy Co." on Justia Law

This case stemmed from Washington Gas' request to expand a natural gas substation (County Zoning Plans). On appeal, Washington Gas challenged the district court's order dismissing Washington Gas' mandatory referral claim and the district court's subsequent order granting summary judgment on Washington Gas' federal preemption claims. The court concluded that the district court did not abuse its discretion in dismissing the mandatory referral claim pursuant to Burford v. Sun Oil; the Natural Gas Pipeline Safety Act (PSA), 49 U.S.C. 60102, 60104, did not preempt the County Zoning Plans because the PSA only preempted safety regulations and the County Zoning Plans were not safety regulations; and the Natural Gas Act (NGA), 15 U.S.C. 717, did not preempt the County Zoning Plans because Washington Gas was a local distributor of natural gas and, therefore, was not subject to the NGA. Accordingly, the court affirmed the district court's judgment. View "Washington Gas Light Co. v. Prince George's County Council" on Justia Law