Justia Energy, Oil & Gas Law Opinion Summaries

In response to a tariff filing by Northern Natural Gas, FERC issued an interpretation of section 4(f) of the Natural Gas Act, 15 U.S.C. 717c(f). Northern objected to the interpretation and further argued that even if it was correct, its effect, should be prospective only. The court rejected both claims, holding that FERC's interpretation was fully consistent with the obvious meaning of the statute. Therefore, the court denied the petition for review. View "Northern Natural Gas Co. v. FERC" on Justia Law

EQT Production Company was the lessee of an oil and gas lease. Matthew Hamblet was the surface owner of a parcel of property included within EQT's leasehold. EQT filed a permit application with the Office of Oil and Gas of the West Virginia EPA (DEP) for a shallow well targeting a Marcellus formation. The DEP issued the permit requested by EQT. Subsequently, Hamblet filed a petition for appeal of the issuance of the well permit in the circuit court. The DEP and EQT filed motions to dismiss the petition contending that Hamblet did not have the right to appeal the issuance of the permit. The circuit court denied the motions, concluding that Hamblet had the right to appeal the permit, but submitted its ruling to the Supreme Court. The Supreme Court held (1) upon consideration of the court of appeals' opinion in State ex rel. Lovejoy v. Callaghan and the relevant statutes, a surface owner is not permitted to seek judicial review of the DEP's issuance of a well work permit for a horizontal Marcellus well; and (2) given this fact, the Court had no basis to find Hamblet had a right to appeal the well work permitted issued by the DEP. View "Martin v. Hamblet" on Justia Law

Appellants appealed form the decision of the circuit court, which upheld an order of the Arkansas Oil and Gas Commission granting relief to SEECO, Inc. in connection with a proposed drilling and production unit. The court of appeals affirmed in part, finding that the Commission's decision was supported by substantial evidence. However, the court dismissed for lack of jurisdiction the portion of the appeal in which Appellants argued that the circuit court erred by not allowing them to present additional evidence to the Commission. The Supreme Court vacated the court of appeals opinion and affirmed in part and dismissed in part, holding (1) the Commission's decision was supported by substantial evidence and was not arbitrary and capricious; and (2) the Court lacked jurisdiction to consider Appellants' appeal from the circuit court's order denying Appellants' request to present additional evidence to the Commission. View "Walls v. Ark. Oil & Gas Comm'n" on Justia Law

These consolidated appeals arose from a final determination of the State Corporation Commission in a mandated biennial review of the rates, terms, and conditions for the provision of generation, distribution and transmission services of an electric utility. As pertinent here, commencing in 2011, the Virginia Electric Utility Regulation Act required the Commission to conduct biennial reviews of an electric utility's performance during the two successive twelve-month periods immediately prior to such reviews pursuant to Va. Code Ann. 56-585.1(A). At issue in this appeal was whether in the 2011 biennial review of the performance of Virginia Electric and Power Company in the 2009-2010 test period the Commission erred in determining that the utility's authorized fair rate of return on common equity of 10.9 percent would apply to the entire 2011-2012 test period in the next biennial review in 2013. The Supreme Court affirmed, holding that the Commission's construction of Code 56-585.1 was based upon the proper application of legal principles, and the Commission did not abuse the discretion afforded to it under that statute. View "Va. Elec. & Power Co. v. State Corp. Comm'n" on Justia Law

In this appeal, Appalachian Power Company (APCO) sought rate adjustment clause recovery of $33.3 million in environmental compliance costs that the State Corporation Commission denied. The Supreme Court reversed in part, affirmed in part, and remanded, holding (1) APCO was entitled to a rate adjustment clause for recovery of actual costs it directly incurred for environmental compliance in 2009 and 2010 but did not recover through its base rates, and the portion of the Commission's decision denying recovery of environmental compliance costs on the basis that those costs were connected with projects included in APCO's base rates which APCO had the opportunity to recover was reversed; and (2) the portion of the Commission's decision denying APCO recovery of environmental compliance costs alleged to be embedded in the capacity equalization charges APCO paid to its affiliates in 2009 and 2010 was affirmed. Remanded. View "Appalachian Power Co. v. State Corp. Comm'n" on Justia Law

The Board of Oil, Gas and Mining (Board) affirmed the approval by the Division of Oil, Gas and Mining (Division) of Alton Coal Development's (ACD) mining permit, which allowed ACD to conduct surface coal mining operations at the Coal Hollow Mine. Petitioners appealed, arguing that the Board erred in affirming ACD's permit because the permit application was deficient in several respects. The Supreme Court affirmed the Board's decision, holding (1) the Board properly concluded that the Division gave adequate consideration to cultural and historic resources in the adjacent area; (2) the Board properly concluded that the Division's cumulative hydrological Impact Assessment satisfied Utah's requirements; (3) the Board properly concluded that the hydrologic monitoring plan was adequate; and (4) therefore, the Board acted within its discretion in affirming the Division's conclusions that ACD's mining permit application satisfied all of the statutory and regulatory requirements. View "Sierra Club v. Bd. of Oil, Gas, & Mining" on Justia Law

A school district (District) obtained an in rem delinquent property tax judgment against an oil and gas lease that Respondent owned and operated. Respondent did not appeal, and the District foreclosed its judgment lien on the leasehold, taking ownership. The Railroad Commission ordered Respondent to plug a well on the lease. Respondent did not comply, and the Commission plugged the well and brought an enforcement action in court to recover the costs of the operation and the penalty. Respondent and the Commission settled. Respondent then sued the District, alleging in part that the District's actions had resulted in a taking of his property requiring compensation. The trial court dismissed Respondent's action for want of jurisdiction, but the court of appeals reversed and remanded with respect to the takings claim. The Supreme Court reversed and dismissed the case, holding that the trial court correctly dismissed Respondent's case, as Respondent did not assert on appeal that the District took his property without compensation. View "W. Hardin County Consol. Indep. Sch. Dist. v. Poole" on Justia Law

This interlocutory appeal stemmed from litigation concerning a contract dispute among Williams Transport, LLC (Williams Transport), Driver Pipeline Company, Inc. (Driver Pipeline), Buckley Equipment Services, Inc. (Buckley Equipment), and other unnamed defendants. Based on an arbitration clause in the contract, Driver Pipeline filed a motion to compel arbitration. The trial court denied the motion to compel arbitration as well as a subsequent motion for reconsideration. Driver Pipeline filed a petition for interlocutory appeal, which the Supreme Court accepted as a notice of appeal. Finding no error by the trial court in denying Driver Pipeline's motion to compel arbitration, the Supreme Court affirmed. View "Driver Pipeline Company, Inc., Buckley Equipment Services, Inc. v. Williams Transport, LLC" on Justia Law

In 2010, Dunne filed a discrimination complaint under 30 U.S.C. 815(c)(2), with the Mine Safety and Health Administration, a division of the Department of Labor, claiming that had terminated his employment for engaging in protected safety-related. The Secretary of Labor determined that the complaint was not frivolously brought, and Vulcan agreed to a temporary (economic) reinstatement pending a determination on the merits. The Secretary later determined not to prosecute Dunne’s complaint before the Federal Mine Safety and Health Review Commission and Vulcan moved to dissolve the reinstatement order. The Commission denied Vulcan’s motion. The Seventh Circuit reversed, in favor of Vulcan, which argued that the term “complaint” in the statutory phrase “final order on the complaint,” refers only to the complaint brought by the Secretary after she determines that section 815(c) has been violated. Placement of the temporary reinstatement provision in the same subsection that describes the Secretary’s investigation, merits determination, and complaint, suggests that Congress meant for temporary reinstatement to continue only during the Secretary’s involvement. View "Vulcan Constr. Materials, L.P. v. Fed. Mine Safety & Health Review Comm'n" on Justia Law

Wenco, a North Dakota limited partnership, appealed a judgment quieting title to certain Mountrail County royalty and mineral interests in EOG Resources, Inc. ("EOG"), and QEP Energy Company ("QEP"), and dismissing Wenco's claims for conversion and unjust enrichment against EOG and QEP. Upon review, the Supreme Court concluded that the district court did not err in ruling as a matter of law that Wenco's interest bore the entire burden of a prior royalty interest conveyance in the subject property, that EOG and QEP did not waive their rights to claim the prior royalty interest conveyance burdened only Wenco's interest, and consequently, that Wenco had no viable claims against EOG and QEP for conversion and unjust enrichment. View "Wenco v. EOG Resources, Inc." on Justia Law