Justia U.S. D.C. Circuit Court of Appeals Opinion Summaries

Articles Posted in Energy, Oil & Gas Law
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INEOS, a chemical producer, petitioned for review of the Commission's decision to accept tariff filings without an investigation under Section 15(7) of the Interstate Commerce Act (ICA). The DC Circuit dismissed the petition for review based on lack of jurisdiction, holding that INEOS lacked Article III standing. In this case, INEOS' claim of competitive injury from denial of access to the South Eddy Lateral was too speculative to support standing; INEOS has not established that it would have received access to the South Eddy Lateral more quickly absent the transfer of ownership; and INEOS also failed to demonstrate that harm it has allegedly suffered was fairly traceable to the Commission's acceptance of the protested tariff filings. Finally, the court rejected INEOS' contention that the Commission's determination denied it of the opportunity to challenge Mid-America's disposition of the South Eddy Lateral as an exercise of undue discrimination and affiliate abuse. View "INEOS USA LLC v. FERC" on Justia Law

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Petitioners challenged the Commission's order authorizing Nexus Gas to construct and operate an interstate natural gas pipeline and exercise the right of eminent domain to acquire any necessary rights-of-way. Although the DC Circuit rejected many of petitioners' arguments, the court agreed with petitioners that the Commission failed to adequately justify its determination that it was lawful to credit Nexus Gas's contracts with foreign shippers serving foreign customers as evidence of market demand for the interstate pipeline. Accordingly, the court remanded without vacatur to the Commission for further explanation of this determination. View "City of Oberlin v. FERC" on Justia Law

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The DC Circuit denied Alon Petitioners' petition for review of EPA's decision not to revise its 2010 point of obligation regulation requiring refineries and importers, but not blenders, to bear the direct compliance obligation of ensuring that transportation fuels sold or introduced into the U.S. market include the requisite percentages of renewables. The court also denied Coffeyville Petitioners' petition challenging EPA's refusal to reassess the appropriateness of the point of obligation in the context of its 2017 annual volumetric rule, which set the 2017 applicable percentages for all four categories of renewable fuel and the 2018 applicable volume for one subset of such fuel, biomass-based diesel. Furthermore, the court rejected Coffeyville Petitioners' claim that EPA arbitrarily set the 2017 percentage standards too high. Finally, the court rejected NBB's separate claim that EPA set the 2018 applicable volume for biomass-based diesel too low. View "Alon Refining Krotz Springs, Inc. v. EPA" on Justia Law

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These consolidated cases concerned the kind of evidence that the Commission deems relevant to proceedings challenging the rate increase of oil pipelines. The DC Circuit vacated the challenged orders, holding that the Commission failed to provide sufficient reasons for changing its policy. Therefore, the court remanded for the Commission to explain or reconsider its decision to take into account post-rate-increase information. View "Southwest Airlines Co. v. FERC" on Justia Law

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The DC Circuit denied a petition for review of FERC's decision upholding charges assessed by the Southwest Power Pool. The court held that FERC's decision was not arbitrary and capricious and rejected Missouri River's argument that the tariff unambiguously confers carve-out eligibility on its transmission reservation under the 1977 Contract; rejected Missouri River's argument that FERC improperly changed course by relying on extrinsic evidence in this case; and rejected Missouri River's undue discrimination claim. The court also held that there was no reason to reject FERC's conclusion that the congestion and marginal loss charges paid for new services not provided for in the 1977 Contract. Finally, the court rejected Missouri River's argument, to the extent it was not forfeited, that the Pool should be equitably estopped from imposing congestion and marginal loss charges against Missouri River. View "Missouri River Energy Services v. FERC" on Justia Law

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The DC Circuit granted a petition for review of FERC's orders finding that California and Oregon had not waived their water quality certification authority under Section 401 of the Clean Water Act (CWA) and that PacifiCorp had diligently prosecuted its relicensing application for the Klamath Hydroelectric Project. At issue was whether states waive Section 401 authority by deferring review and agreeing with a licensee to treat repeatedly withdrawn and resubmitted water quality certification requests as new requests. The court held that the withdrawal-and-resubmission of water quality certification requests did not trigger new statutory periods of review. Therefore, California and Oregon have waived their Section 401 authority with regard to the Project. Furthermore, the court disagreed that a finding of waiver was futile. View "Hoopa Valley Tribe v. FERC" on Justia Law

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The DC Circuit denied North Carolina's petition for review of FERC's orders involving the relicensing of the Yadkin Hydroelectric Project No. 2197. North Carolina alleged that the license applicant, Alcoa, misrepresented its plans to discontinue the use of project power for industrial production at Badin Works, a major source of employment in the state. The court held that substantial evidence supported FERC's decision and contradicted the existence of any deficiencies or deception in Alcoa's application. In this case, Alcoa disclosed the curtailment of industrial production at Badin Works every step of the way, from its initial filing of intent to relicense, through its various correspondences with FERC, to the license application itself. Furthermore, nothing in the record demonstrated that Alcoa had any nefarious intent to deceive FERC or the public at large. The court also held that North Carolina's recapture proposal lacked any basis in the law. Finally, the court held that, while the loss of jobs caused by the permanent closure of Badin Works did affect public interest, FERC had already accounted for its impact. View "North Carolina v. FERC" on Justia Law

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The DC Circuit denied SDG&E's petition for review of FERC's declaratory order applying FERC's cancelled or abandoned electricity transmission facilities incentive, 18 C.F.R. 35.35(d)(1)(vi) (Abandonment Incentive), only prospectively, to investments that had yet to occur. Determining that it had jurisdiction over the appeal, the court agreed with the Commission's finding that SDG&E failed to establish the requisite nexus between the Abandonment Incentive and costs it already incurred before it obtained the declaratory order. The court held that the Commission's finding was supported by substantial evidence and its approach comported with both the Federal Power Act and the Incentive Rule. Furthermore, the court found SDG&E's several objections unpersuasive. View "San Diego Gas & Electric Co v. FERC" on Justia Law

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Petitioner, owner of a number of electric generation resources in New England, challenged FERC's adoption of changes to the Transmission, Markets, and Services Tariff proposed by the Independent System Operator for New England (ISO-NE). The DC Circuit held that the parties' dispute may be illusory and thus remanded the record for the agency to sort out what it really means. In this case, at oral argument, counsel for FERC suggested that FERC interpreted the tariff rules in a way that largely squares with Exelon's view of its rights. View "Exelon Corp. v. FERC" on Justia Law

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The DC Circuit granted ANR's petition for review challenging FERC's decision refusing to allow ANR to charge market-based rates, as opposed to cost-based rates, for its natural gas storage services. The court held that FERC acted arbitrarily and capriciously because it did not provide any reasonable justification for allowing DTE affiliates but not ANR to charge market-based rates. Furthermore, FERC's market-power analysis was internally inconsistent. The court also held that ANR's remaining contentions lacked merit. The court remanded for further proceedings. View "ANR Storage Co. v. FERC" on Justia Law