Justia Civil Procedure Opinion Summaries

Articles Posted in Energy, Oil & Gas Law
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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 The Commonwealth Court issued a single-judge, unpublished opinion and order, granting in part and denying in part preliminary injunctive relief.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

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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

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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

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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

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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

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Rocky Mountain Steel Foundations, Inc. appealed a judgment invalidating its oil and gas construction liens and awarding attorney fees to Mitchell's Oil Field Services, Inc., also known as Wood Group, and Travelers Casualty and Surety Company of America (collectively "Mitchell's"). Mitchell's, as general contractor, entered into a contract with Brockett Company, LLC, as subcontractor, and Amber Brockett, as personal guarantor (collectively "Brockett"), to purchase construction materials for installation on certain oil wells. Brockett purchased materials from Rocky Mountain to fulfill Brockett's contract with Mitchell's. Mitchell's paid Brockett in full. Rocky Mountain delivered the materials, and Mitchell's installed the materials. Rocky Mountain thereafter recorded two oil and gas well liens against the wells because Brockett had not paid Rocky Mountain. Mitchell's recorded lien release bonds, with the liens attached to the bonds. Mitchell's received payment in full, then Rocky Mountain filed to foreclose on the liens. The parties agreed Mitchell's paid Brockett in full before Rocky Mountain delivered the materials to the wells and before Mitchell's or the leaseholders received notice of the liens. The parties agreed Rocky Mountain timely and properly satisfied all statutory and other requirements to create, perfect, and foreclose on the liens. Rocky Mountain recorded the liens on well leaseholds by ConocoPhillips Company and Burlington Resources Oil & Gas Co. (the "owners"). Brockett did not answer or appear at any hearings and admitted to nonpayment, but asserted it has no assets with which to pay. The district court granted summary judgment in favor of Rocky Mountain for its breach of contract claim against Brockett. The parties submitted their remaining claims to the district court solely on interpretation of the oil and gas construction liens provided by N.D.C.C. ch. 35-24. The court found N.D.C.C. 35-24-04 invalidated Rocky Mountain's liens after the owners paid Mitchell's. The primary issue before the North Dakota Supreme Court was whether N.D.C.C. 35-24-04 permitted a subcontractor's oil and gas construction lien when an owner fully paid the general contractor. Rocky Mountain argued the district court erred in finding Rocky Mountain's liens were invalidated when the owners fully paid Mitchell's. The Supreme Court agreed: Section 35-24-02, N.D.C.C., allowed contractors to file liens for unpaid materials furnished or services rendered "in the drilling or operating of any oil or gas well upon such leasehold." The district court erred in interpreting N.D.C.C. sections 35-24-04 and -07 to invalidate Rocky Mountain's liens, and also erred in awarding attorney fees to Mitchell's. View "Rocky Mountain Steel Foundations, Inc. v. Brockett Company, LLC" on Justia Law

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Rocky Mountain Steel Foundations, Inc. appealed a judgment invalidating its oil and gas construction liens and awarding attorney fees to Mitchell's Oil Field Services, Inc., also known as Wood Group, and Travelers Casualty and Surety Company of America (collectively "Mitchell's"). Mitchell's, as general contractor, entered into a contract with Brockett Company, LLC, as subcontractor, and Amber Brockett, as personal guarantor (collectively "Brockett"), to purchase construction materials for installation on certain oil wells. Brockett purchased materials from Rocky Mountain to fulfill Brockett's contract with Mitchell's. Mitchell's paid Brockett in full. Rocky Mountain delivered the materials, and Mitchell's installed the materials. Rocky Mountain thereafter recorded two oil and gas well liens against the wells because Brockett had not paid Rocky Mountain. Mitchell's recorded lien release bonds, with the liens attached to the bonds. Mitchell's received payment in full, then Rocky Mountain filed to foreclose on the liens. The parties agreed Mitchell's paid Brockett in full before Rocky Mountain delivered the materials to the wells and before Mitchell's or the leaseholders received notice of the liens. The parties agreed Rocky Mountain timely and properly satisfied all statutory and other requirements to create, perfect, and foreclose on the liens. Rocky Mountain recorded the liens on well leaseholds by ConocoPhillips Company and Burlington Resources Oil & Gas Co. (the "owners"). Brockett did not answer or appear at any hearings and admitted to nonpayment, but asserted it has no assets with which to pay. The district court granted summary judgment in favor of Rocky Mountain for its breach of contract claim against Brockett. The parties submitted their remaining claims to the district court solely on interpretation of the oil and gas construction liens provided by N.D.C.C. ch. 35-24. The court found N.D.C.C. 35-24-04 invalidated Rocky Mountain's liens after the owners paid Mitchell's. The primary issue before the North Dakota Supreme Court was whether N.D.C.C. 35-24-04 permitted a subcontractor's oil and gas construction lien when an owner fully paid the general contractor. Rocky Mountain argued the district court erred in finding Rocky Mountain's liens were invalidated when the owners fully paid Mitchell's. The Supreme Court agreed: Section 35-24-02, N.D.C.C., allowed contractors to file liens for unpaid materials furnished or services rendered "in the drilling or operating of any oil or gas well upon such leasehold." The district court erred in interpreting N.D.C.C. sections 35-24-04 and -07 to invalidate Rocky Mountain's liens, and also erred in awarding attorney fees to Mitchell's. View "Rocky Mountain Steel Foundations, Inc. v. Brockett Company, LLC" on Justia Law

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Samantha Hall was diagnosed with leukemia; she attributed the disease to a ConocoPhillips refinery’s emissions of a chemical known as benzene. Hall lived near ConocoPhillips’s refinery in Ponca City, Oklahoma. Roughly two decades later, she developed a form of leukemia known as “Acute Myeloid Leukemia with Inversion 16.” Liability turned largely on whether benzene emissions had caused Hall’s leukemia. On the issue of causation, the district court excluded testimony from two of Hall’s experts and granted summary judgment to ConocoPhillips. After review, the Tenth Circuit Court of Appeals affirmed because: (1) the district court did not abuse its discretion in excluding the expert testimony; and (2) expert testimony was necessary to create a genuine issue of material fact on causation because of the length of time between the exposure to benzene and the onset of Hall’s disease. View "Hall v. Conoco" on Justia Law

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In 2013, Frank Benedetti, an employee of Schlumberger Technology Corporation, was working on an oil rig near El Reno, Oklahoma, when he slipped on an icy platform and fell more than thirty feet down a stairwell. Benedetti sued Cimarex Energy Company, the owner and operator of the well site, and Cactus Drilling Company, the owner and operator of the oil rig, for negligence. Cimarex moved to dismiss pursuant to 85 O.S. 2011 section 302(H), which provided that "any operator or owner of an oil or gas well . . . shall be deemed to be an intermediate or principal employer" for purposes of extending immunity from civil liability. The district court granted the motion to dismiss, and Benedetti appealed. The Court of Civil Appeals affirmed. Pursuant to the Oklahoma Supreme Court’s decision in Strickland v. Stephens Production Co., 2018 OK 6, ___ P.3d ___, the Supreme Court concluded section 302(H) of Title 85 was an impermissible and unconstitutional special law under Art. 5, section 59 of the Oklahoma Constitution. Subsection (H) was severed from the remainder of that provision. View "Benedetti v. Cimarex Energy Co." on Justia Law

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New Energy Economy, Inc. (NEE) appealed a final order issued by the New Mexico Public Regulation Commission (PRC). NEE contended the PRC violated New Mexico law by approving a contested stipulation granting the Public Service Company of New Mexico (PNM) certificates of public convenience and necessity (CCNs) to acquire new generation resources and by filing a notice proposing to dismiss the protests to PNM’s 2014 integrated resource plan (IRP). The New Mexico Supreme Court determined NEE’s arguments were predicated on a mistaken understanding of the law, and NEE asked the Court to accept factual assertions that were rejected in earlier proceedings. The Court affirmed the PRC’s final order. View "New Energy Econ. v. N.M. Pub. Regulation Comm'n" on Justia Law