Justia U.S. 10th Circuit Court of Appeals Opinion Summaries

In 2012, the Environmental Protection Agency (EPA) promulgated a final Federal Implementation Plan (FIP) to reduce regional haze by regulating emissions of nitrogen oxides (NOx) and particulate matter (PM) at the five units of the Four Corners Power Plant on the Navajo Reservation. WildEarth Guardians filed a petition under 42 U.S.C. 7607(b)(1) for review of the FIP. It argued that promulgation of the FIP did not comply with the Endangered Species Act (ESA) because the EPA failed to consult with the Fish and Wildlife Service about the effect of the FIP even though the EPA had discretion to act to protect endangered fish near the Plant from mercury and selenium emissions. WildEarth argued that the EPA had four grounds for the exercise of discretion that could have benefitted the fish. But the principal ground was mooted by the closure of three units of the Plant, and two other grounds were not raised in WildEarth’s opening brief. "As for the fourth alleged ground, it could not create a duty to consult under the ESA because it would have required the EPA to exceed the clearly delineated boundaries of the FIP." The Tenth Circuit denied the petition. View "WildEarth Guardians v. EPA, et al" on Justia Law

Mid-Continent Casualty Company brought a declaratory judgment action to settle an issue with its commercial commercial general liability (CGL) policy issued to Pennant Service Company. In 2001, True Oil Company, an owner and operator of oil and gas wells, entered into a master service contract (MSC) with Pennant for work on a well in Wyoming. The MSC included a provision whereby Pennant agreed to indemnify True Oil resulting from either Pennant or True Oil's negligence. In July 2001, Christopher Van Norman, a Pennant employee, was injured in an accident at True Oil's well. Van Norman sued True Oil in Wyoming state court for negligence. In accordance with the MSC's indemnity provision, counsel for True Oil wrote to Pennant requesting indemnification for its defense costs, attorney fees, and any award that Van Norman might recover against it. Mid-Continent refused to defend or indemnify True Oil based on Wyoming's Anti-Indemnity Statute, which invalidates agreements related to oil or gas wells that "indemnify the indemnitee against loss or liability for damages for . . . bodily injury to persons." In May 2002, True Oil brought a federal action against Mid-Continent for declaratory relief, breach of contract (CGL policy), and other related claims. In February 2005, the district court granted Mid-Continent summary judgment, determining that the MSC's indemnity provision, when invoked with respect to claims of the indemnitee's own negligence was unenforceable as a matter of public policy. The court held that Mid-Continent was not required to defend or indemnify True Oil in the underlying suit as it then existed because "where an indemnification provision in a MSC is void and unenforceable, the insurer never actually assumed any of the indemnitee's liabilities under the policy." The district court granted summary judgment to True Oil, determining Mid-Continent breached its duty to defend and indemnify True Oil. As damages, the court awarded True Oil the amount it paid to settle the underlying suit and the attorney fees and costs incurred in defending itself. Mid-Continent appealed the district court's judgment. Finding no reversible error, the Tenth Circuit affirmed. View "Mid-Continent v. True Oil Company" on Justia Law

The dispute between the parties in this case centered over mineral rights. Stull Ranches, LLC operated a grouse hunting business on its surface estate in rural Colorado. Entek GRB, LLC leased the right to explore and develop the minerals under much of Stull’s surface and adjoining surface estates from the federal government. This dispute arose when Entek asked permission to enter Stull’s surface estate (both to develop new oil well sites on Stull’s land and to get at one of its existing wells located on an adjacent surface estate owned by the Bureau of Land Management). Along the way, Entek pointed out that the only available road to the well on BLM’s estate crossed Stull’s land. Concerned that Entek’s presence would unsettle its grouse, Stull refused access. Entek sued to gain access. The district court held that Entek was entitled to access portions of Stull’s surface to mine certain leases lying below. But the court also held that Entek was entitled to no more than this - in particular, Entek could not cross Stull’s surface to service the well on the adjacent BLM land. Entek appealed, arguing to the Tenth Circuit that the district court erred by not granting it access to BLM lands. Upon review, the Tenth Circuit agreed that the district court in not granting Entek the relief it originally requested. The Court therefore vacated the grant of summary judgment in favor of Stull and remanded the case for further proceedings. View "Entek GRB, LLC v. Stull Ranches, LLC" on Justia Law

Plaintiff-appellee Randy Howard sought to bring a class action suit against Ferrellgas Partners, LP in federal district court for allegedly overcharging him and other customers. Ferrellgas moved to force plaintiff to pursue his individual claim alone, in arbitration, arguing that arbitration was the procedure the parties had agreed to. The district court was unable to conclude that the parties agreed to arbitrate. Rather than proceed to trial as the Federal Arbitation Act required, the district court entered an order denying arbitration outright. The Tenth Circuit concluded that denial was error: "When it's apparent from a quick look at the case that no material disputes of fact exist, it may be permissible and efficient for a district court to decide the arbitration question as a matter of law through motions practice and viewing the facts in the light most favorable to the party opposing arbitration. . . . Parties should not have to endure years of waiting and exhaust legions of photocopiers in discovery and motions practice merely to learn where their dispute will be heard. The Act requires courts process the venue question quickly so the parties can get on with the merits of their dispute in the right forum. It calls for a summary trial — not death by discovery." View "Howard v. Ferrellgas Partners, et al" on Justia Law

Since the early 1990s, Chevron and its predecessor Texaco, Inc., have defended litigation concerning Texaco's operations in Ecuador and the environmental contamination it allegedly produced. This litigation started in the Southern District of New York but eventually found its way to Ecuadorian courts. In 2011, the court in Lago Agrio entered an $18.2 billion judgment against Chevron, which Chevron appealed. In this case, Chevron appealed the United States district court's order granting a motion to compel production of documents pursuant to subpoenas issued under 28 U.S.C. 1782. Chevron sought relief from that judgment pursuant to investment treaty arbitration under United Nations' rules. Finding no error, the Tenth Circuit affirmed the district court's order. View "The Republic of Ecuador, et al v. Bjorkman" on Justia Law

This matter arose from efforts by Wasatch Wind Intermountain, LLC to establish two wind energy projects. These efforts drew the ire of the Northern Laramie Range Alliance, which objected to Wasatch’s certification to sell the energy. The Federal Energy Regulatory Commission (FERC) rejected the objections, and the Alliance appealed FERC’s decision. The threshold issue for the Tenth Circuit was whether the Alliance has established standing, which requires traceability and redressability. For both, the Alliance relied on increases in electricity rates. But the wind projects had not been completed, Wasatch had not found a buyer for the anticipated wind power, and it was unknown whether sales of wind energy would increase or decrease Northern Laramie's costs. With the uncertainties surrounding the effect of Wasatch’s certification or decertification on electricity rates, the Court concluded the Alliance did not show either traceability or redressability. The Court therefore dismissed the petition for lack of standing. View "N. Laramie Range Alliance v. FERC" on Justia Law

The federal government moved the Osage Nation to the State of Oklahoma. Years later, the Nation discovered its new home contained mammoth reserves of oil and gas. The federal government appropriated itself as trustee, to oversee collection of royalty income and its distribution to tribal members. In this lawsuit, tribal members sought an accounting to determine whether the federal government fulfilled its fiduciary obligations. The district court dismissed the tribal members’ claims. Upon review of the district court record, the Tenth Circuit found the tribe was entitled to an accounting, and accordingly reversed. View "Fletcher, et al v. United States, et al" on Justia Law

Plaintiff-Appellant Farrell-Cooper Mining Company and Defendant-Appellant Oklahoma Department of Mines appealed a district court's dismissal of their claims for declaratory and injunctive relief against the Department of Interior; the Secretary of the Interior; the Office of Surface Mining, Reclamation and Enforcement; and the Director of OSMRE. A dispute arose over reclamation requirements contained in surface coal mine permits for Farrell-Cooper's Liberty Mine #5 and Liberty Mine #6. Upon review, the Tenth Circuit dismissed the appeal as unripe. View "Farrell-Cooper Mining Company v. US Department of the Interior, et al" on Justia Law

Petitioner WildEarth Guardians challenged an Environmental Protection Agency order that denied in part its petition for an objection to a Title V operating permit issued by the Colorado Department of Public Health and Environment (CDPHE) to Intervenor Public Service Company of Colorado (d/b/a Xcel Energy), for a coal-fired power station in Morgan County, Colorado. Petitioner argued that the permit should have included a plan to bring the station into compliance with the Clean Air Act. The EPA denied Petitioner's petition for an objection despite the EPA's issuing a citation to Public Service for violating the act in 2002. The EPA concluded that Petitioner's evidence failed to demonstrate a violation, and that the state agency adequately responded to Petitioner's comments before it issued the permit. Petitioner petitioned the Tenth Circuit on appeal. The Court saw no error in the EPA's persuasive interpretation of the demonstration requirement. Furthermore, the Court concluded the agency did not act arbitrarily or capriciously in concluding that Petitioner failed to demonstrate noncompliance with the Act. Therefore the Court affirmed the EPA's order denying in part the petition to object. View "WildEarth v. EPA" on Justia Law

A dispute arose between Elm Ridge Exploration Company, LLC, an operator of oil and gas leases in New Mexico, and Fred Engle, who owned a majority of those leases. Elm Ridge sought to recover drilling expenses by foreclosing on Engle's lease interests. Engle counterclaimed, arguing that Elm Ridge had no authority to operate, and broadly that Elm Ridge breached its contractual and fiduciary duties. Engle also filed a third-party complaint against the previous operators, Central Resources, Inc. and Giant Exploration & Production Company. The district court dismissed two counts on Engle's counterclaim against Elm Ridge and the third-party complaint on statute of limitations grounds. After a trial on Engle's remaining counterclaim count (breach of contractual and fiduciary duties), a jury found that Elm Ridge breached the Operating Agreement and could not recover drilling expenses. The jury found that Engle still owed Elm Ridge for other drilling costs. The district court calculated Engle's share of the costs not attributable to the breach, and held Elm Ridge was entitled to a foreclosure order. Both parties appealed. Finding no error in the district court's calculation or ultimate disposition of the case, the Tenth Circuit affirmed. View "Engle v. Elm Ridge Exploration Co." on Justia Law