Justia Government & Administrative Law Opinion Summaries

Articles Posted in Energy, Oil & Gas Law
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This case was an appeal of a final water court order which voided a rule promulgated by the Office of the State Engineer regarding nontributary ground water extracted in the course of coalbed methane (CBM) production and other oil and gas development. The final rules were challenged by owners of vested water rights and citizen groups whose members owned vested water rights. After extensive briefing by the parties, the water court upheld the Final Rules in their entirety except for the "Fruitland Rule," which it invalidated. The water court held that although H.B. 1303 granted authority to the State Engineer to promulgate the Fruitland Rule, the Tribal Rule essentially divested the State Engineer of that authority. The water court also found that the State Engineer had issued an improper "advisory" rule, and thus could not promulgate the Fruitland Rule unless he first obtained a judicial determination of his authority over nontributary ground water underlying the Reservation. The State Engineer, the Tribe, and several Intervenors appealed the water court's decision. Upon review, the Supreme Court reversed, concluding that the water court erred in invalidating the Fruitland Rule based on the Tribal Rule. The Court concluded the Tribal Rule did not divest the State Engineer of this authority: it stated on its face that the Final Rules themselves do not form the basis of or "establish" the State Engineer's authority to administer the nontributary ground water within Reservation boundaries. Because the Tribal Rule did not divest the State Engineer of his authority, the water court erred in invalidating the Fruitland Rule on that ground. Furthermore, the water court also erred in labeling the Fruitland Rule an "advisory" rule and in requiring the State Engineer to obtain a judicial determination that he had authority to administer nontributary ground water within the boundaries of the Reservation. Accordingly, the Supreme Court reversed the water court’s invalidation of the Fruitland Rule and remanded the case for further proceedings. View "Dick Wolfe v. Pawnee Well Users, Inc." on Justia Law

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This case concerned Merit Energy Company's 2006 natural gas severance and ad valorem tax liability for wells located in several counties. Merit was a take-in-kind interest owner, which is a party who elects to take a portion of the mineral produced rather than receive monetary remuneration for its share of the production. The State Board of Equalization (SBOE) determined that Merit failed to timely appeal several final Wyoming Department of Revenue (DOR) decisions regarding the amount of taxable gas it had received and dismissed Merit's appeal. The district court affirmed. The Supreme Court affirmed, holding (1) the district court did not err in affirming the SBOE's dismissal as untimely; and (2) even if the Court permitted Merit to appeal the notice of valuation change sent by the DOR, the doctrine of collateral estoppel precluded Merit from doing so. View "Merit Energy Co. v. Dep't of Revenue" on Justia Law

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APAC petitioned for review of a settlement agreement between the BPA and a large number of its customers. The settlement set terms for refunding customers who were previously over-charged, as well as setting terms for the next seventeen years. APAC alleged that the settlement violated several provisions of the Pacific Northwest Power Planning and Conservation Act (NWPA), 16 U.S.C. 839c(c), 839e(b); the Bonneville Project Act, 16 U.S.C. 832d(a); regulations of the Federal Energy Commission, 18 C.F.R. 300.1(b)(6), 300.21(e)(1); and the court's decision in Portland Gen. Elec. Co. v. BPA and Golden NW. Aluminum, Inc. v. BPA. As a preliminary matter, the court concluded that APAC had standing to challenge the settlement because of the "pass-through" contracts under which its members pay rates that directly reflect the rates BPA charged its direct customers. On the merits, the court concluded that the settlement complied with the relevant statutory requirements and with the court's prior decisions. Accordingly, the court denied the petition for review. View "APAC v. BPA" on Justia Law

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This matter arose from efforts by Wasatch Wind Intermountain, LLC to establish two wind energy projects. These efforts drew the ire of the Northern Laramie Range Alliance, which objected to Wasatch’s certification to sell the energy. The Federal Energy Regulatory Commission (FERC) rejected the objections, and the Alliance appealed FERC’s decision. The threshold issue for the Tenth Circuit was whether the Alliance has established standing, which requires traceability and redressability. For both, the Alliance relied on increases in electricity rates. But the wind projects had not been completed, Wasatch had not found a buyer for the anticipated wind power, and it was unknown whether sales of wind energy would increase or decrease Northern Laramie's costs. With the uncertainties surrounding the effect of Wasatch’s certification or decertification on electricity rates, the Court concluded the Alliance did not show either traceability or redressability. The Court therefore dismissed the petition for lack of standing. View "N. Laramie Range Alliance v. FERC" on Justia Law

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Under a Power Sales Agreement, the Authorities granted Entergy the right to oversee the generation of power and to purchase the generated power. Plaintiffs filed suit against Entergy after their properties were flooded and eroded after the Authorities and Entergy opened spillway gates during certain times. Because the state law property damages claims at issue here infringed on FERC's operational control, the court held that they were conflict preempted. Accordingly, the court held that the district court properly concluded that the Federal Power Act, 16 U.S.C. 791-828c, preempted plaintiffs' claim for negligence. The court affirmed the district court's judgment in its entirety. View "Simmons, et al. v. Sabine River Authority, et al." on Justia Law

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The federal government moved the Osage Nation to the State of Oklahoma. Years later, the Nation discovered its new home contained mammoth reserves of oil and gas. The federal government appropriated itself as trustee, to oversee collection of royalty income and its distribution to tribal members. In this lawsuit, tribal members sought an accounting to determine whether the federal government fulfilled its fiduciary obligations. The district court dismissed the tribal members’ claims. Upon review of the district court record, the Tenth Circuit found the tribe was entitled to an accounting, and accordingly reversed. View "Fletcher, et al v. United States, et al" on Justia Law

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Magellan Pipeline Company, LP appealed a sales tax assessment levied by the state Department of Revenue and Regulation on its additive injection and equipment calibration services. The Hearing Examiner, Department Secretary and trial court all found Magellan's services were non-exempt from tax. Upon review, the Supreme Court concluded that under the plain language of the applicable statute, Magellan's services were exempt from sales tax. View "Magellan Pipeline Co v. Dept. of Revenue & Regulation" on Justia Law

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Plaintiff-Appellant Farrell-Cooper Mining Company and Defendant-Appellant Oklahoma Department of Mines appealed a district court's dismissal of their claims for declaratory and injunctive relief against the Department of Interior; the Secretary of the Interior; the Office of Surface Mining, Reclamation and Enforcement; and the Director of OSMRE. A dispute arose over reclamation requirements contained in surface coal mine permits for Farrell-Cooper's Liberty Mine #5 and Liberty Mine #6. Upon review, the Tenth Circuit dismissed the appeal as unripe. View "Farrell-Cooper Mining Company v. US Department of the Interior, et al" on Justia Law

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North Central Electric Cooperative appealed a district court judgment affirming a Public Service Commission order that dismissed its complaint against Otter Tail Power Company. The Commission decided it did not have regulatory authority over Otter Tail's extension of electric service to a facility owned by the Turtle Mountain Band of Chippewa Indians on tribal trust land within the Turtle Mountain Indian Reservation. North Central argued on appeal: (1) the Commission has jurisdiction under North Dakota law; and (2) the Commission's findings were not supported by a preponderance of the evidence and did not sufficiently address North Central's evidence. Upon review, the Supreme Court affirmed, concluding the Commission did not err in deciding it lacked authority to regulate the Tribe's decision to have Otter Tail provide electric service to a tribal-owned facility on tribal-owned land within the reservation. View "North Central Electric Coop., Inc. v. Public Service Commission" on Justia Law

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Alaskan Crude Corporation applied to the Alaska Oil and Gas Conservation Commission to have a suspended the "Burglin 33-1" well reopened to explore for oil and gas. Arguing that it was highly unlikely that oil from the well would rise to the surface unassisted, Alaskan Crude requested to be exempted from oil discharge response requirements or, in the alternative, to have the requirements reduced. The Commission made successive reductions to the technical flow-rate assessments and the response planning standards that it recommended to the Alaska Department of Environmental Conservation for use in setting Alaskan Crude’s discharge response requirements. The Commission declined, however, to classify the Burglin 33-1 well as a gas facility, which would have exempted Alaskan Crude entirely from such requirements. Alaskan Crude appealed to the superior court, challenging the Commission’s recommended response planning standards and its well classification. The superior court affirmed. Alaskan Crude appealed from the superior court’s decision. Finding no error, the Supreme Court affirmed. View "Alaskan Crude Corporation v. Alaska" on Justia Law