Justia Civil Procedure Opinion Summaries

In an issue of first impression for the Louisiana Supreme Court, was what prescriptive period, if any, was applicable to a citizen suit for injunctive relief pursuant to LSA-R.S. 30:16 suit. Justin Tureau instituted a citizen suit pursuant to LSA-R.S. 30:16, alleging that defendants drilled and operated numerous oil and gas wells on his property, or on adjacent property, as well as constructed and used unlined earthen pits. Specifically, Tureau alleged that said unlined pits were either never closed, or were not closed in conformance with environmental rules and regulations, including Statewide Order 29-B, L.A.C. 43:XIX.101, et seq, which, among other things, requires the registration and closure of existing unlined oilfield pits, as well as the remediation of various enumerated contaminants in the soil to certain minimum standards. The Supreme Court held that a LSA-R.S. 30:16 citizen suit was not subject to liberative prescription. The Court further found that, insofar as the petition alleges that defendants violated conservation laws, rules, regulations, or orders, the allegations were sufficient to defeat an exception of no cause of action. The Court therefore affirmed the appeals court ruling, which overruled defendants’ exceptions of prescription, overruled the exceptions of no cause of action, and remanded this case for further proceedings. View "Louisiana v. Pilcher" on Justia Law

In 2018, John Webb Pace, Jeannette Pace, and John Gregory Pace (the Paces) filed a complaint against Tiger Production Company, LLC, CCore Energy Management Company, LLC, Robert Marsh Nippes, and Harry Walters (collectively, “Tiger Production”). Each defendant filed a motion to dismiss the Paces’ claims for failure to exhaust their administrative remedies before the Mississippi Oil and Gas Board (MSOGB). After hearing oral arguments, the circuit court denied the motions to dismiss, determining that all of the Paces’ claims were based in common law and could not be remedied by the MSOGB. Tiger Production timely sought interlocutory appeal, which the Mississippi Supreme Court granted. After review, the Supreme Court found the circuit court was correct. The Court therefore affirmed the circuit court’s judgment and remanded the case to the circuit court for further proceedings. View "Tiger Production Company, LLC, et al. v. Pace" on Justia Law

The Federal Energy Regulatory Commission (FERC)  brought an enforcement action against BP, alleging the company capitalized on the hurricane-induced chaos in commodities markets by devising a scheme to manipulate the market for natural gas. BP sought judicial review of FERC’s order finding that BP engaged in market manipulation and imposing a $20 million civil penalty.   The Fifth Circuit explained that because FERC predicated its penalty assessment on its erroneous position that it had jurisdiction over all (and not just some) of BP’s transactions, the court must remand for a reassessment of the penalty in the light of the court’s jurisdictional holding. Thus, the court granted in part and denied in part BP’s petition for review and remanded to the agency for reassessment of the penalty.   The court explained that it has rejected FERC’s expansive assertion that it has jurisdiction over any manipulative trade affecting the price of an NGA transaction. The court, however, reaffirmed the Commission’s authority over transactions directly involving natural gas in interstate commerce under the NGA. The court further determined that there was substantial evidence to support FERC’s finding that BP manipulated the market for natural gas. The court found that FERC’s reasoning in imposing a penalty was not arbitrary and capricious, though the court concluded that FERC’s reliance on an erroneous understanding of its own jurisdiction necessitates remand for recalculation of the penalty. Finally, the court held that neither separation of functions nor statute of limitations issues justify overturning the Commission’s order. View "BP America v. FERC" on Justia Law

The Delaware River Basin Commission banned high-volume hydraulic fracturing (fracking) within the Delaware River Basin, reflecting its determination that fracking “poses significant, immediate and long-term risks to the development, conservation, utilization, management, and preservation of the [Basin’s] water resources.” The ban codified a “de facto moratorium” on natural gas extraction in the Basin since 2010. Two Pennsylvania state senators, the Pennsylvania Senate Republican Caucus, and several Pennsylvania municipalities challenged the ban, alleging that the Commission exceeded its authority under the Delaware River Basin Compact, violated the Takings Clause, illegally exercised the power of eminent domain, and violated the Constitution’s guarantee of a republican form of government.The Third Circuit affirmed the dismissal of the suit for lack of standing. No plaintiff alleged the kinds of injuries that Article III demands. Legislative injuries claimed by the state senators and the Republican Caucus affect the state legislature as a whole; under Supreme Court precedent, “individual members lack standing to assert the institutional interests of a legislature.” The municipalities alleged economic injuries that are “conjectural” and “hypothetical” rather than “actual and imminent.” None of the plaintiffs have standing as trustees of Pennsylvania’s public natural resources under the Pennsylvania Constitution's Environmental Rights Amendment because the fracking ban has not cognizably harmed the trust. View "Yaw v. Delaware River Basin Commission" on Justia Law

The State of North Dakota, ex rel. the North Dakota Board of University and School Lands, and the Office of the Commissioner of University and School Lands, a/k/a the North Dakota Department of Trust Lands appealed a judgment dismissing its claim against Newfield Exploration Company relating to the underpayment of gas royalties. The North Dakota Supreme Court found that the district court concluded the State did not establish a legal obligation owed by Newfield. However, the State pled N.D.C.C. § 47-16-39.1 in its counterclaim, which the court recognized at trial. Because the State satisfied both the pleading and the proof requirements of N.D.C.C. § 47-16-39.1, the Supreme Court held the district court erred in concluding the State did not prove Newfield owed it a legal obligation to pay additional royalties. Rather, as the well operator, Newfield owed the State an obligation under N.D.C.C. § 47-16-39.1 to pay royalties according to the State’s leases. The court failed to recognize Newfield’s legal obligations as a well operator under N.D.C.C. § 47-16-39.1. The Supreme Court concluded the district court erred in dismissing the State's counterclaim; therefore, judgment was reversed and the matter remanded for findings related to the State's damages and Newfield's affirmative defenses. View "Newfield Exploration Company, et al. v. North Dakota, et al." on Justia Law

Texas recently enacted such a ban on new entrants in a market with a more direct connection to interstate commerce than the drilling of oil wells: the building of transmission lines that are part of multistate electricity grids. The operator of one such multistate grid awarded Plaintiff NextEra Energy Capital Holdings, Inc. the right to build new transmission lines in an area of east Texas that is part of an interstate grid. But before NextEra obtained the necessary construction certificate from the Public Utilities Commission of Texas, the state enacted the law, SB 1938, that bars new entrants from building transmission lines. NextEra challenges the new law on dormant Commerce Clause grounds. It also argues that the law violates the Contracts Clause by upsetting its contractual expectation that it would be allowed to build the new lines   The Fifth Circuit concluded that the dormant Commerce Clause claims should proceed past the pleading stage. But the Contracts Clause claim fails as a matter of law under the modern, narrow reading of that provision. The court explained that limiting competition based on the existence or extent of a business’s local foothold is the protectionism that the Commerce Clause guards against. Thus, the court reversed the Rule 12(b)(6) dismissal of the claim that the very terms of SB 1938 discriminate against interstate commerce. Further, the court held that SB 1938 did not interfere with an existing contractual right of NextEra. NextEra did not have a concrete, vested right that the law could impair. It thus fails at the threshold question for proving a modern Contracts Clause violation. View "NextEra, et al v. D'Andrea, et al" on Justia Law

Delaware and Hoboken, New Jersey each sued the oil companies in state court for state-law torts. By “produc[ing], marketing, and s[e]l[ling] fossil fuels,” they claimed, the oil companies worsened climate change. They sought damages for the environmental harm they had suffered and injunctions to stop future harm. The oil companies removed the cases to federal district courts. The suits’ broad focus on “global climate change,” the companies reasoned, “demand[ed] resolution by a federal court under federal law.”. They argued the tort claims arose under federal law, either because they were inherently federal, not state claims, or they raised substantive federal issues; the suits related to producing oil on the Outer Continental Shelf; and the oil companies were acting under federal officers.The Third Circuit affirmed the remands of the cases to state courts, noting that four other circuits have refused to allow the oil companies to remove similar state tort suits to federal court. These lawsuits neither are inherently federal nor raise substantial federal issues that belong in federal court. Oil production on the Outer Continental Shelf is too many steps removed from the burning of fuels that causes climate change. Delaware and Hoboken are not suing over actions that the companies were directed to take by federal officers. View "City of Hoboken v. Chevron Corp" on Justia Law

Chevron U.S.A. Inc. intends to decommission two oil platforms located off the coast of California. The activity of those platforms is generally subject to the Clean Air Act. Chevron asked the Environmental Protection Agency for guidance on whether, as the process of decommissioning the two oil platforms moves forward, the platforms will cease to qualify as regulated sources under the Clean Air Act. EPA responded in a letter to Chevron. Unsatisfied with the views set out in EPA’s letter, Chevron now seeks judicial review of EPA’s response.The DC Circuit dismissed Chevron’s petition for review. The court wrote that it does not reach the merits of Chevron’s petition for review. In the circumstances of this case, the Clean Air Act’s venue provision allows for judicial review in this court only if EPA’s challenged action is “nationally applicable,” as opposed to “locally or regionally applicable.” 42 U.S.C. Section 7607(b)(1). The court concluded that EPA’s response letter is locally or regionally applicable, and that venue over Chevron’s challenge lies exclusively in the United States Court of Appeals for the Ninth Circuit. View "Chevron U.S.A. Inc. v. EPA" on Justia Law

Vermilion Parish School Board (“VPSB”) filed suit in 2004, alleging oil and gas operations conducted pursuant to a 1935 mineral lease and a 1994 surface lease damaged Section 16 land. VPSB asserted causes of action for negligence, strict liability, unjust enrichment, trespass, breach of contract, and violations of Louisiana environmental laws. The Louisiana Supreme Court granted rehearing to reconsider its prior decision in Louisiana v. Louisiana Land and Exploration Co., 20-00685 (La. 6/30/21), _So.3d_. The case presented two main issues: (1) the proper interpretation of Act 312 relative to the award of damages for the evaluation or remediation of environmental damage; and (2) whether the strict liability tort claim prescribed. With the benefit of additional oral argument and briefing, the Court affirmed its original decree. View "Louisiana, et al. v. Louisiana Land & Exploration Co., et al." on Justia Law

In this climate-change case, the First Circuit once more affirmed the order of the federal district court allowing Rhode Island's motion to return to state court its state court complaint against oil and gas companies for damages caused by fossil fuels, holding that Rhode Island's complaint did not give rise to federal removal jurisdiction.Rhode Island originally brought this complaint in state court, alleging state-law causes of action for, inter alia, public nuisance. After the energy companies removed the case to federal district court Rhode Island moved for the case to be remanded to state court. The district court granted the motion and ordered the case remanded to state court. The First Circuit affirmed the remand order. On certiorari, the Supreme Court instructed that the First Circuit give further consideration in light of recent caselaw. The First Circuit received supplemental briefs and then affirmed once more the judge's remand order, holding that removal based on federal-question jurisdiction and on other jurisdictional and removal statutes was not proper. View "State of Rhode Island v. Shell Oil Products Co., LLC" on Justia Law