Justia Civil Procedure Opinion Summaries
Articles Posted in Energy, Oil & Gas Law
Barrera v. BP, PLC
The Fifth Circuit affirmed the district court's dismissal of 104 plaintiffs' claims related to the Deepwater Horizon oil spill. Plaintiffs, individuals and associations located in Mexico that rely on the fishing industry as a primary source of income, argued that the district court abused its discretion in making dismissal with prejudice the remedy for failing to comply with pretrial order (PTO) 60.The court held that plaintiffs' failure to comply with PTO 60 constituted a clear record of delay considering the number of opportunities the district court gave plaintiffs to either comply with PTO 60, explain why they could not do so, or show documentation of their attorneys' efforts. The court also held that the district court's explicit warnings and second chances illustrated that lesser sanctions would not serve the best interests of justice. View "Barrera v. BP, PLC" on Justia Law
Kelly v. Ankor Energy, LLC
Ankor Energy, LLC, and Ankor E&P Holdings Corporation (collectively, "Ankor") appealed a circuit court's grant of a motion for a new trial in favor of Jerry Kelly, Kandace Kelly McDaniel, Kelly Properties, LLP, and K&L Resources, LLP (collectively, "the Kellys"). In 2010, Renaissance Petroleum Company, LLC, drilled two oil wells in Escambia County, Alabama. The Kellys owned property in Escambia County and entered into two leases with Renaissance. The leases included property near the two wells. In December 2010, Ankor acquired an interest in Renaissance's project and leases in Escambia County. In January 2011, Renaissance and Ankor petitioned the Oil and Gas Board ("the Board") to establish production units for the two wells. In February 2011, the Board held a hearing to determine what property to include in the production units. The Kellys were represented by counsel at the hearing and argued that their property should be included in the production units. The Board established the production units for the two wells but did not include the Kellys' property. Renaissance continued to operate the project until May 2011, when Ankor took over operations. In December 2011, Ankor offered to request that the Board include the Kellys' property in the production units. Ankor took the position that it had not drained any oil from the Kellys' property, and Ankor offered to pay royalties to the Kellys but only after the date the Board included the Kellys' property in the production units. The Kellys did not accept the offer, and later sued, listing multiple causes of action and alleging Ankor failed to include their property in the production units presented to the Board, knowing that their property should have been included. After review, the Alabama Supreme Court reversed the trial court's order granting the Kellys' motion for a new trial based on juror misconduct; the matter was remanded for the trial court to reinstate the original judgment entered on the jury's verdict in favor of Ankor. View "Kelly v. Ankor Energy, LLC" on Justia Law
Siana Oil & Gas Co., LLC v. Dublin Co.
Greggory Tank appealed an amended judgment quieting title to royalty interests in property located in McKenzie County, North Dakota in favor of several of the defendants. In June 2014, Tank sued numerous defendants seeking to quiet title to royalty interests in proceeds from the production from an oil and gas well. Most of the defendants did not appear or settled with Tank. The remaining defendants who were the appellees in this appeal contested the quiet title action. The royalty interests at issue were subject to several possible conveyances. Tank claims ownership of a 16 percent royalty interest based on an unbroken chain of title utilizing filed county records dating back to the federal fee patent. Included within that chain of title was a 1931 purchase of the property by McKenzie County under a tax foreclosure sale. The County subsequently sold and transferred the property in 1945. The defendants claimed various percentages of royalty interests under a recorded 1938 assignment of an 11 percent royalty to oil and gas produced on the property. The North Dakota Supreme Court reversed the district court's amended judgment quieting title to the royalty interests in favor of the defendants and directed the entry of judgment quieting title in favor of Tank. A county's tax deed gives it title or color of title to the whole estate in the land including the royalty interests. A tax deed, valid upon its face, creates a presumptive title to the entire estate in the land which continues until it has been overcome by the affirmative action in court, by suit or counterclaim on the part of a person who has a sufficient interest to challenge the title. Royalty interests cannot be "possessed" for purposes of the statute of limitations or adverse possession. The Court remanded this case to the district court for determination of whether Tank was barred from the recovery of royalty payments previously made to the defendants and, if not barred, the amount of the recovery. View "Siana Oil & Gas Co., LLC v. Dublin Co." on Justia Law
City of Boulder v. Public Service Company of Colorado
This case arose from respondent Public Service Company of Colorado’s (“Xcel’s”) challenge to the City of Boulder’s attempt to create a light and power utility. Xcel argued that the ordinance establishing the utility, Ordinance No. 7969 (the “Utility Ordinance”), violated article XIII, section 178 of Boulder’s City Charter. Xcel thus sought a declaratory judgment deeming the Utility Ordinance “ultra vires, null, void, and of no effect.” Petitioners, the City of Boulder, its mayor, mayor pro tem, and city council members (collectively, “Boulder”), argued Xcel’s complaint was, in reality, a C.R.C.P. 106 challenge to a prior ordinance, Ordinance No. 7917 (the “Metrics Ordinance”), by which Boulder had concluded that it could meet certain metrics regarding the costs, efficiency, and reliability of such a utility. Boulder contended this challenge was untimely and thereby deprived the district court of jurisdiction to hear Xcel’s complaint. The district court agreed with Boulder and dismissed Xcel’s complaint. Xcel appealed, and in a unanimous, published decision, a division of the court of appeals vacated the district court’s judgment. As relevant here, the division, like the district court, presumed that Xcel was principally proceeding under C.R.C.P. 106. The division concluded, however, that neither the Metrics Ordinance nor the Utility Ordinance was final, and therefore, Xcel’s complaint was premature. The division thus vacated the district court’s judgment. Although the Colorado Supreme Court agreed with Boulder that the division erred, contrary to Boulder’s position and the premises on which the courts below proceeded, the Supreme Court agreed with Xcel that its complaint asserted a viable and timely claim seeking a declaration that the Utility Ordinance violated Boulder’s City Charter. Accordingly, the Supreme Court concluded the district court had jurisdiction to hear Xcel’s declaratory judgment claim challenging the Utility Ordinance, and remanded this case to allow that claim to proceed. View "City of Boulder v. Public Service Company of Colorado" on Justia Law
In re Keystone XL Pipeline
The Supreme Court vacated the decision of the circuit court affirming the decision of the South Dakota Public Utilities Commission issuing an order accepting the certification of TransCanada Keystone Pipeline LP that it continued to meet permit conditions, holding that the circuit court lacked jurisdiction to hear Appellants’ appeals.The Commission granted a permit to TransCanada to construct the Keystone XL Pipeline in South Dakota. None of the parties in that proceeding appealed the order issuing a permit. Because TransCanada was unable to commence construction within four years, it certified that it continued to meet the permit conditions, as required by S.D. Codified Laws 49-41B-27. After conducting an evidentiary hearing, the Commission accepted the certification. Appellants - the Cheyenne River Sioux Tribe, the Yankton Sioux Tribe, and Dakota Rural Action - each appealed. The circuit court affirmed. The Supreme Court consolidated the appeals, vacated the circuit court’s decision, and dismissed the appeal, holding that the circuit court lacked jurisdiction to hear the appeals. View "In re Keystone XL Pipeline" on Justia Law
Marcellus Shale Coalition v. Dept. Environmental Protection
Appellee, the Marcellus Shale Coalition (“MSC”), filed in the Commonwealth Court’s original jurisdiction a petition for review in the nature of a complaint seeking declaratory and injunctive relief (the “Petition”), on behalf of itself and its members. MSC challenged the validity of several regulations relating to unconventional gas well operations as governed by Pennsylvania’s Oil and Gas Act of 2012 (known as Act 13). MSC alleged that certain provisions were void and unenforceable for multiple reasons, including that they were vague, lacked statutory authorization, and conflicted with other regulations and statutes applicable to the industry. Furthermore, MSC averred that the rulemaking process did not comply with the Regulatory Review Act, and that the Pennsylvania Environmental Quality Board (the “EQB”) failed to develop criteria for the Pennsylvania Department of Environmental Protection (“DEP”) to use in conditioning a drilling permit on relevant factors. The Commonwealth Court issued a single-judge, unpublished opinion and order, granting in part and denying in part preliminary injunctive relief. The Commonwealth Court also issued an order granting in part and denying in part MSC's Application for Expedited Special Relief. The order preliminarily enjoined DEP from implementing and enforcing certain sections of the Act. After its review of the parties' arguments on appeal of the Commonwealth Court order, the Pennsylvania Supreme Court affirmed in part and reversed in part. The Supreme Court affirmed the grant of preliminary injunctive relief as to Counts I and II. As for Count IV, the Court affirmed the grant of relief as to Section 78a.59c, but reversed the grant of relief as to Section 78a.59b(b). Finally, the Court reversed the grant of preliminary injunctive relief as to Count V. View "Marcellus Shale Coalition v. Dept. Environmental Protection" on Justia Law
Gorsline v Bd. of Sup. of Fairfield Twp.
In a discretionary appeal, the issue reviewed by the Pennsylvania Supreme Court centered on whether the Commonwealth Court erred in reversing the decision of the Lycoming County Court of Common Pleas, which, in turn, had reversed the decision of the Fairfield Township Board of Supervisors (the “Board”) to allow for the drilling, construction, development and operation of unconventional natural gas wells as a conditional use in a district zoned Residential-Agricultural (“R-A”). The Supreme Court determined after review of the evidentiary record, the Board's decision was not supported by the evidence, and because the proposed use was not similar to any permitted use in the R-A district as required under the Fairfield Township Zoning Ordinance (the “Ordinance”), the Court reversed the decision of the Commonwealth Court. View "Gorsline v Bd. of Sup. of Fairfield Twp." on Justia Law
Appeal of Algonquin Gas Transmission, LLC
Appellants, Algonquin Gas Transmission, LLC (Algonquin) and Public Service Company of New Hampshire d/b/a Eversource Energy (Eversource), appealed a New Hampshire Public Utilities Commission (PUC) order dismissing Eversource’s petition for approval of a proposed contract for natural gas capacity, as well as a program to set parameters for the release of capacity and the sale of liquefied natural gas made available to electric generators, and/or an associated tariff. Appellees, NextEra Energy Resources, LLC (NextEra), Conservation Law Foundation (CLF), and the Office of the Consumer Advocate (OCA), appeared in opposition to this appeal. In denying Eversource’s petition, the PUC first ruled “that the overriding purpose of the Restructuring Statute is to introduce competition to the generation of electricity” with the “long-term results [to] be lower prices and a more productive economy.” The PUC then further ruled that “[t]o achieve that purpose, RSA 374-F:3, III directs the restructuring of the industry, separating generation activities from transmission and distribution activities, and unbundling the rates associated with each of the separate services.” Given these rulings, the PUC concluded that “the basic premise of Eversource’s proposal — having an EDC purchase long-term gas capacity to be used by electric generators — runs afoul of the Restructuring Statute’s functional separation requirement.” The NEw Hampshire Supreme Court disagreed. Pursuant to its plain language, and reading the statute as a whole, the Court discerned the primary intent of the legislature in enacting RSA chapter 374- F was to reduce electricity costs to consumers. The Court disagreed with the PUC’s ruling that the legislature’s “overriding purpose” was “to introduce competition to the generation of electricity.” Rather, as the statute provides, the legislature intended to “harness[ ] the power of competitive markets,” as a means to reduce costs to consumers, not as an end in itself. Likewise, the Court disagreed with the PUC’s ruling that RSA 374-F:3, III directed the “functional separation” of generation services from transmission and distribution services and elevates that single policy principle over the others identified in the statute. Therefore, the Supreme Court held the PUC erred in dismissing Eversource’s petition as a matter of law. In light of its decision, the Court did not address the appellant’s remaining arguments. View "Appeal of Algonquin Gas Transmission, LLC" on Justia Law
In re Investigation into Programmatic Adjustments to the Standard-Offer Program (Renewable Energy Vermont, Appellant)
Appellant Renewable Energy Vermont (REV) asked the Vermont Supreme Court to review a Vermont Public Utility Commission order altering technology allocations in the standard-offer program for renewable energy projects. The Supreme Court determined what REV sought was an advisory opinion and therefore dismissed the appeal for lack of jurisdiction. View "In re Investigation into Programmatic Adjustments to the Standard-Offer Program (Renewable Energy Vermont, Appellant)" on Justia Law
Appeal of Allen et al.
Petitioners Mary Allen, Fred Ward, and other interested parties, appealed the decision of the New Hampshire Site Evaluation Committee (Committee) authorizing respondent Antrim Wind Energy, LLC (Antrim Wind), to construct and operate nine wind turbines in the town of Antrim. Antrim Wind originally filed an application (Antrim I) with the Committee in 2012, seeking authorization to construct ten wind turbines. Six of the turbines would be equipped with red flashing aviation obstruction lights. The project also included four miles of new gravel surfaced roads, a joint electrical system, an interconnection substation, and a maintenance building. Antrim Wind further proposed to construct a meteorological tower between turbines three and four to obtain wind data, dedicate 800 acres of land to conservation easements, and install a radar activated lighting system. Antrim I was initially denied; a few years later, Antrim II was filed and ultimately approved by the Committee, finding the second application reflected a “substantial change” from the first application, and as such, would not “have an unreasonable adverse effect on the health, safety, or aesthetics of the region. On appeal, petitioners argued the Committee’s ultimate decision was unreasonable, unlawful, and unjust because: (1) the subcommittee was unlawfully constituted; (2) the denial of Antrim I barred Antrim Wind’s Antrim II application under the doctrine of res judicata as well as the subsequent application doctrine as set forth in Fisher v. City of Dover, 120 N.H. 187 (1980); and (3) there was insufficient evidence in the record to support the subcommittee’s finding that the project proposed in Antrim II would not have an unreasonable adverse impact on aesthetics, public health, and safety. After review of the record, the New Hampshire Supreme Court concluded there was competent evidence to support all of the subcommittee’s factual findings. The subcommittee deliberated about each of these assessments and impacts and determined which experts it found to be more credible. The subcommittee also imposed certain mitigation measures and conditions to address remaining concerns and to ensure regulatory compliance. Accordingly, the Court concluded petitioners failed to show reversible error. View "Appeal of Allen et al." on Justia Law