Justia Government & Administrative Law Opinion Summaries

Articles Posted in Energy, Oil & Gas Law
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The issue before the Tenth Circuit in this case centered on whether the Mineral Leasing Act (MLA), as amended by the Reform Act of 1987, required the Secretary of the Interior to issue leases for parcels of land to the highest bidding energy company within sixty days of payment to the Bureau of Land Management (BLM). Appellants (collectively, "Energy Companies") sued to compel the Secretary to issue pending leases on which they were the high bidders and more than sixty days had passed since they had paid the BLM in full. The district court construed the MLA to impose a mandate on the Secretary to decide whether to issue the leases, and ordered BLM to make such decisions regarding the still pending leases of Energy Companies within thirty days. Energy Companies appealed the district court's order and asserted that the MLA required the Secretary to issue the pending leases within sixty days rather than merely make a decision on whether the leases will be issued. Upon review of the matter, the Tenth Circuit held that the district court’s order was not a "final decision," and as such, the Court lacked jurisdiction to hear the Energy Companies' appeal. View "Western Energy Alliance v. Salazar" on Justia Law

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Three main issues were raised on appeal to the Supreme Court in this case: (1) whether a school district is liable for oil and gas severance taxes on its royalty interests derived from oil and gas production on sixteenth-section land (the chancellor ruled that it is not); (2) whether the statute of limitations restricts the time period in which a school district can seek a refund of severance taxes that it had paid erroneously (the chancellor ruled that a three-year statute of limitations applied to any refund claims); and (3) whether a school district is liable for administrative expense taxes on its royalty interests derived from oil and gas production on sixteenth-section land (the chancellor ruled that it is). Upon review of the applicable code and in consideration of the arguments of the parties to this case, the Supreme Court found that the chancellor's judgment should be affirmed in part and reversed in part: (1) school districts are not liable for oil and gas severance taxes on sixteenth-section royalty interests: school districts, as political subdivisions of the state, are not included within the definition of "persons" made subject to these taxes; (2) pursuant to the Mississippi Constitution, statutes of limitation in civil causes do not run against the state or its subdivisions; and (3) school districts are liable for administrative expense taxes on sixteenth-section royalty interests: "[t]hese assessments are 'fees,' not 'taxes'; the Legislature has expressly made the state and its subdivisions subject to these fees; and no constitutional provision or other law is violated by requiring school districts to pay them." View "Jones County School District v. Mississippi Department of Revenue" on Justia Law

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Appellant Catherine Lakey and twelve other homeowners owned property that bordered a parcel owned by Puget Sound Energy, Inc. (PSE) on which there was an electrical substation. The homeowners sued PSE and the City of Kirkland after PSE constructed a new substation on PSE property. The homeowners sought review of the trial court's decision to exclude testimony of their expert under the "Frye" rule, and the court's ultimate decision to grant summary judgment on behalf of PSE. Upon review, the Supreme Court concluded that the trial court improperly excluded the expert's testimony under the "Frye" rule but properly excluded it under the Rules of Evidence ER702. Furthermore, the Court reversed the trial court's decision with respect to their Land Use Petition Act (LUPA) claims, finding that LUPA did not apply to the homeowners' inverse condemnation claim. The Court affirmed the trial court in all other respects. View "Lakey v. Puget Sound Energy" on Justia Law

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The Department of Environmental Protection approved an application of Saddleback Ridge Wind, LLC for a permit to construct the Saddleback Ridge Wind Project, a wind energy development. The Board of Environmental Protection affirmed. Friends of Maine's Mountains, Friends of Saddleback Mountain, and several individuals appealed, arguing, among other things, that the Board abused its discretion when determining which nighttime sound level limit to apply to the applications. The Supreme Court vacated the Board's order related to nighttime sound requirements and remanded, holding that the Board failed to meet its statutory obligation to protect the health and welfare of the Project's neighbors and thus abused its discretion in approving Saddleback's permit applications. View "Friends of Maine's Mountains. v. Bd. of Envtl. Prot." on Justia Law

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The Pilgrim Nuclear Power Station in Massachusetts submitted an environmental impact statement (EIS) with its relicensing application in 2006. Before relicensing occurred, an earthquake and tsunami occurred off the coast of Japan, which hit the Fukushima Daiichi nuclear power plant. Less than three months later, Massachusetts moved to admit a contention and to reopen the Pilgrim record, arguing that Fukushima revealed new and significant information that the environmental impact analysis needed to address. The Atomic Safety and Licensing Board denied Massachusetts's motion. The Nuclear Regulatory Commission (NRC) denied the Commonwealth's petition for review, rejecting the Commonwealth's claims that the EIS was inadequate in light of the damage to Fukushima. The Commonwealth also petitioned for review from the NRC's vote to renew the license of the Pilgrim station. The First Circuit Court of Appeals denied the petition for review, holding that the NRC did not act arbitrarily or capriciously by (1) failing to require supplementation of the EIS in light of Fukushima; and (2) declining to hear Massachusetts' rulemaking petition and to complete all the post-Fukushima review before granting the license. View "Massachusetts v. U.S. Nuclear Regulatory Comm'n" on Justia Law

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This case stemmed from the interaction between the NRC's regular decommissioning process of a licensed nuclear facility and a statutory provision (section 2021 of the Atomic Energy Act, 42 U.S.C. 2021) authorizing the NRC to transfer regulatory authority over classes of nuclear materials located within a state to the government of that state. In regards to the basic standards for decommissioning, the court's inability to understand the key regulatory materials purportedly guiding the agency exercise of control over decommissioning required a remand. The court found no legal error in the remainder of the Commission's Order. View "Shieldalloy Metallurgical Corp. v. Nuclear Regulatory Comm., et al" on Justia Law

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In this case, FERC reviewed rates resulting from an auction process and concluded that though the rates were not contract rates, they warranted the Mobile-Sierra doctrine presumption anyway. The NEPGA and State Petitioners petitioned for review. Because the NEPGA lacked standing, the court dismissed its petition for review. The court rejected the merits of the State Petitioners' arguments where FERC did not exceed the bounds of its considerable discretion by adopting the public interest standard for deciding whether a given Forward Capacity Auction rate was just and reasonable. Accordingly, the court denied the State Petitioners' petition for review. View "New England Power Generators Assoc., Inc. v. FERC" on Justia Law

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Petitioners, HPBA and NPGA, sought review of two recently promulgated rules that they believed expanded the Energy Policy and Conservation Act (EPCA), 42 U.S.C. 6201 et seq., to include decorative fireplaces. The court agreed with the HPBA that the DOE's interpretation of decorative fireplaces as "Direct heating equipment," a specifically enumerated class of covered products under the Act, contravened the EPCA's statutory scheme and, in turn, clear congressional intent. Accordingly, the court vacated and remanded for further proceedings. View "Hearth, Patio & Barbecue Assoc. v. Dept. of Energy" on Justia Law

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Plaintiffs the State and the Vermilion Parish School Board filed a "Petition for Damages to School Lands" in 2004 seeking damages and remediation of a sixteenth section of property in Vermilion Parish owned by the State and managed by the School Board. The property was allegedly polluted by oil and gas exploration and production performed pursuant to an oil, gas and mineral lease originally granted on the property in 1935 and a surface lease entered into in 1994. The plaintiffs claimed damage to the land’s soil, surface waters and ground waters. Plaintiffs raised various causes of action including negligence, strict liability, unjust enrichment, trespass, breach of contract and violations of both the Mineral Code and the Civil Code. Several defendants were named in the original petition and in supplemental and amending petitions as companies which conducted, directed, controlled or participated in various oil and gas exploration and production activities as operators and/or working interest owners, and/or joint venturers in the mineral interest. At the time of this appeal, the remaining defendants were Union Oil Company of California; Union Exploration Partners; Carrollton Resources, L.L.C.; Chevron USA Inc.; and Chevron Midcontinent, L.P. In a motion for summary judgment, Chevron USA Inc. sought dismissal from suit, which was denied. Upon review of Chevron's argument that it should have been dismissed from the suit, the Supreme Court agreed with the court of appeal’s conclusion that there seemed to be a genuine issue of material fact as to Chevron USA Inc.’s successor status to Union Oil Company of California, and as such, should not have been dismissed from the case. Consequently, the Court affirmed the court of appeal’s opinion in this regard. View "Louisiana v. Louisiana Land & Exploration Company" on Justia Law

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After a portion of an oil and gas lease's interest was assigned to Chesapeake Exploration, LLC, the Ohio Division of Oil and Gas Resources Management (Division) issued a permit to Chesapeake to drill an oil and gas well on the lease property. Summitcrest, Inc., who originally entered into the lease with the assignor, appealed to the Oil and Gas Commission (Commission). The Division filed a motion to dismiss the appeal, claiming that the issuance of permits to drill oil and gas wells did not constitute an appealable order. Chesapeake joined in the Division's motion to dismiss. The Commission denied the motion to dismiss. Chesapeake filed this action for a writ of prohibition to prevent the Commission from exercising further jurisdiction in the appeal and to vacate the Commission's actions in the appeal. The Commission subsequently heard the appeal and affirmed the issuance of the drilling permit. Thereafter, Respondents filed a motion to dismiss the prohibition case based on mootness, which the Supreme Court denied. The Supreme Court then granted the writ, holding that the Commission patently and unambiguously lacked jurisdiction over the appeal from the Division's issuance of the permit. View "Chesapeake Exploration, LLC v. Oil & Gas Comm'n" on Justia Law