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What Does “Sprawling Litigation” Look Like?

It looks like what you’d expect: a bunch of litigants spending lots of time at a courthouse in Goliad, Texas, with no end in sight. After much ”sprawl” in Harkins v. Northshore Energy it came down to the meaning of this...more

North Dakota Good Faith Purchasers: At What Point is Notice Relevant?

The Question - In order to be a good faith purchaser, a party must not have actual or constructive notice of another’s rights. Northern Oil and Gas v. Creighton asked, When should the determination of whether a party...more

Some PURPA Qualifying Facilities are More Qualified Than Others

In a fascinating decision last week, a divided panel of the 5th Circuit Court of Appeals held that the Texas Public Utilities Commission had authority to limit the universe of “Qualifying Facilities” under the Public...more

Fifth Circuit Allows Texas Commission to Limit PURPA Sales

On September 8, 2014, the U.S. Court of Appeals for the Fifth Circuit dealt a blow to Exelon Corp. (“Exelon”), rejecting challenges by various Exelon wind-generating entities to a Texas Public Utility Commission (PUCT)...more

Fifth Circuit Holds that Texas Public Utility Commission Can Limit Ability of Intermittent Wind Generators to Sell Their Power...

On September 8, 2014, the United States Court of Appeals for the Fifth Circuit (“Fifth Circuit”), in a 2-1 decision, reversed an opinion by the United States District Court for the Western District of Texas (“District Court”)...more

Subcontractors Score a Victory in Federal Court

On August 27, in In re Heritage Consolidated, L.L.C., the Fifth Circuit Court of Appeals granted subcontractor’s lien rights to two oil and gas drilling contractors. The Court reversed a district court ruling which upheld a...more

Freedom to Contract Prevails in New Mexico

Is freedom to contract a good thing for everybody? First Baptist Church of Roswell v. Yates Petroleum Corp. says yes, and confirms that the public policy in New Mexico is freedom to contract. In this case, it was to avoid...more

Should You Pay for Something You’re Not Getting? The Pennsylvania Supreme Court Will Take Up Shedden v. Anadarko E&P Company, L.P.

The Pennsylvania Supreme Court will consider whether an oil and gas lessee’s refusal to pay a “bonus” on acreage that the lease supposedly conveyed to it, but that the lessor did not own at the time of leasing and had not...more

Non-Incumbent Transmission Developers Win with Court’s Affirmance of FERC’s Order No. 1000

Non-incumbent transmission developers scored a big win last week. As we previously reported here, the D.C. Circuit Court of Appeals upheld FERC’s Order No. 1000. Among other things, Order 1000 mandated that a regional...more

D.C. Circuit Rejects Challenges to FERC’s Order No. 1000

The court turned back all challenges to FERC’s order, which imposed major regional transmission planning requirements, concluding that FERC has adequately justified the order and acted within its statutory authority....more

Northern District of Texas Dismisses Bad Faith Claims in Well-Control Policy Dispute

Eagle Oil & Gas Co. v. Travelers Prop. Cas. Co. of Am., No. 7:12-cv-00133-O (N.D. Tex. Jul. 14, 2014) - Northern District of Texas dismisses bad faith claims against insurer and adjuster in dispute over coverage for...more

D.C. Circuit Upholds Order No. 1000, FERC’s Landmark Transmission Planning and Cost Allocation Rulemaking Order

On August 15, 2014, the United States Court of Appeals for the District of Columbia Circuit unanimously affirmed Order No. 1000, a landmark set of rules approved by the Federal Energy Regulatory Commission (FERC) in 2011 to...more

CO2 is Good

In French vs. Occidental Permian, Ltd. the Texas Supreme Court held that costs associated with injection of carbon dioxide into a reservoir in a tertiary recovery operation were properly deducted from royalties. This...more

CO2 Separation Anxiety—Is the cost of separating CO2 from casinghead gas a “production” or “post-production” cost for purposes of...

In a recent decision, the Supreme Court of Texas concluded that the cost of removing carbon dioxide (“CO2”) from casinghead gas after completing enhanced oil recovery operations is a “post-production” cost, thus clarifying...more

MoFo New York Tax Insights - Volume 5, Issue 8 - August 2014

In This Issue: - Department Releases New Nonresident Audit Guidelines to Address Gaied - Nuclear Power Plant That Produces Steam and Water to Generate Electricity Is Not Eligible for Investment Tax...more

Illinois Appellate Court’s Expansive Interpretation of a Taxing Ordinance Swallows a Sale for Resale Exemption

The First District of the Illinois Appellate Court, in Ford Motor Company v. Chicago Department of Revenue, 2014 IL App (1st) 130597 (June 27, 2014), recently held that Ford Motor Company (Ford) owes City of Chicago vehicle...more

Rumsfeld, Morrison and the Discovery Rule in Texas

In August 1999, Brock and Tipton signed a Farm and Ranch Contract by which Tipton would acquire 519 acres in Montague County. (Lots of Brocks were parties to the contracts and the suit. I refer to them as one for...more

California Insurance Coverage Cases Raising Key Issues On The Horizon

This year, 2014, is lining up with interesting insurance coverage cases pending across the country which may lead to far reaching decisions. In California specifically, it is apparent to us that the Hartford Insurance...more

District Court Decertifies Class based on Dukes, Comcast and Tenth Circuit Precedent

Plaintiff sued for underpayment or nonpayment of royalties on natural gas produced from wells in Kansas due to defendant’s failure to place the gas in marketable condition. The district court initially certified the class in...more

Fifth Circuit Holds That a TPEE in a CGL Policy Can Exclude Pollution Claims Even in the Face of a UREC

What you need to know: The Fifth Circuit Court of Appeals, applying Texas law, held that a Total Pollution Exclusion Endorsement in a CGL Policy did not irreconcilably conflict with, and therefore was not superseded...more

The Accommodation Doctrine Revisited: A Question of "Fairness to Both Parties"

As Texas holds tight to its position as the nation's number one oil and natural gas producing state, the Texas Supreme Court's decision to revisit the over forty-year-old accommodation doctrine, which requires oil and gas...more

Iowa Supreme Court Allows Third-Party PPA to Move Forward

On Friday, July 11, the Supreme Court of Iowa issued a decision holding that a solar energy company entering into a third-party power purchase agreement (PPA) with an Iowa municipality would not be considered a public utility...more

Insurance Recovery Law - July 2014 #2

U.S. Bank Wins Coverage Under Delaware Law For $55 Million Overdraft-Related Settlement - Why it matters: In a victory worth tens of millions of dollars, a Minnesota federal court ruled that U.S. Bank is...more

“2 Sign or Not 2 Sign:” Which Statute of Frauds Governs Oil & Gas Leases?

In a recent decision, the Pennsylvania Superior Court resolved an open question of state law regarding which one of two alternative statutes of frauds apply to oil and gas leases, in the process making clear that for an oil...more

Fifth District Upholds CEQA Exemptions For Ongoing Pre-CEQA Projects And Continued Operation of Existing Facilities To Reject...

In a July 3, 2014 published decision more notable for the practical importance of the water rights involved than the CEQA law applied, the Fifth District Court of Appeal rejected the CEQA challenges of various environmental...more

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