Justia U.S. 6th Circuit Court of Appeals Opinion Summaries

Enbridge Energy owns and operates a pipeline that runs from Wisconsin, through Michigan, and into Canada, crossing the Straits of Mackinac under a 1953 easement with the State of Michigan. In 2020, Michigan Governor Gretchen Whitmer informed Enbridge that the State was revoking the easement, alleging that Enbridge had violated it by creating an unreasonable risk of an oil spill. Enbridge responded by filing a federal lawsuit against Governor Whitmer and the Director of the Michigan Department of Natural Resources, seeking declaratory and injunctive relief to prevent the State from interfering with the pipeline's operation.The United States District Court for the Western District of Michigan rejected the defendants' argument that Enbridge’s claims were barred by Eleventh Amendment sovereign immunity. The court held that Enbridge’s lawsuit fell within the Ex parte Young exception to sovereign immunity, which allows federal courts to hear cases seeking prospective relief against state officials for ongoing violations of federal law.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's decision. The Sixth Circuit held that Enbridge’s lawsuit was not barred by sovereign immunity because it sought prospective injunctive relief against state officials for alleged violations of federal law, fitting within the Ex parte Young doctrine. The court rejected the defendants' arguments that the suit was equivalent to a quiet title action or a request for specific performance of a state contract, finding that the relief sought would not divest the State of ownership or regulatory control over the land. Thus, the court concluded that Enbridge’s claims could proceed in federal court. View "Enbridge Energy, LP v. Whitmer" on Justia Law

EOG Resources, Inc. holds drilling rights to oil and gas beneath property owned by Lucky Land Management, LLC in Ohio. The dispute arose over whether EOG's drilling rights included the right to drill horizontally from Lucky Land's surface to adjacent properties. EOG sought a preliminary injunction to access the land, cut down trees, and start constructing drills. The district court granted the injunction, finding that EOG would likely succeed on the merits.The United States District Court for the Southern District of Ohio granted EOG's request for a preliminary injunction, allowing EOG to access the land and begin drilling operations. The court found that EOG was likely to succeed on the merits of its claim and that the balance of equities and public interest favored granting the injunction. Lucky Land Management appealed the decision.The United States Court of Appeals for the Sixth Circuit reviewed the case and disagreed with the district court's findings. The appellate court held that Lucky Land had the better interpretation of oil-and-gas law, which generally does not allow a lessee to use the surface of one property to drill into neighboring lands without explicit permission. The court also found that EOG would not suffer irreparable harm if it had to wait for the litigation to proceed, as any potential losses could be compensated with monetary damages. The court emphasized that preliminary injunctions are meant to prevent irreparable injuries and preserve the court's ability to issue meaningful final relief, not to serve as shortcuts to the merits. Consequently, the Sixth Circuit reversed the district court's decision to grant the preliminary injunction. View "EOG Resources, Inc. v. Lucky Land Management, LLC" on Justia Law

Tennessee Gas Pipeline Company (TGP) proposed constructing a 32-mile natural gas pipeline across several Tennessee counties, which would involve crossing numerous waterbodies. TGP applied for a § 404 permit from the United States Army Corps of Engineers (the Corps), a § 401 water quality certification from the Tennessee Department of Environment and Conservation (TDEC), and a certificate of public convenience and necessity from the Federal Energy Regulatory Commission (FERC). The Corps issued the § 404 permit, allowing TGP to discharge materials into waterbodies during construction.The Corps issued public notices and received comments on TGP’s application. TGP responded to these comments, explaining its assessment of alternative routes and crossing methods. FERC issued a Final Environmental Impact Statement, concluding that the Pipeline would not result in significant environmental impacts. TDEC issued a § 401 water quality certification, and FERC issued a certificate of public convenience and necessity. The Corps then issued the § 404 permit with special conditions, including requirements for TGP to use the least impactful trenching techniques and obtain approval before using blasting methods.The United States Court of Appeals for the Sixth Circuit reviewed the Corps' decision. The court held that the Corps did not act arbitrarily or capriciously in issuing the § 404 permit. The Corps properly assessed practicable alternatives to open-cut trenching, determined that TGP’s proposed rock-removal methods were the least environmentally damaging practicable alternatives, and correctly relied on TDEC’s § 401 water quality certification. The court also found that the Corps provided sufficient support for its conclusions regarding suspended particulates and turbidity and adequately assessed the cumulative effects of the Pipeline’s construction. The court denied the petition for review. View "Appalachian Voices v. Army Corps of Engineers" on Justia Law

A certified class of Ohio landowners alleged that a Colorado-based mining company, Antero Resources Corporation, underpaid them $10 million in natural gas royalties. The landowners claimed that Antero improperly deducted costs for processing and fractionation from their royalties. Antero counterclaimed, seeking authority to deduct additional costs related to gathering, dehydrating, compressing, and transporting the unrefined natural gas. The district court certified the class, denied Antero's motion for summary judgment, granted the landowners' motion, and entered a final judgment after the parties stipulated damages.The United States District Court for the Southern District of Ohio ruled in favor of the landowners, finding that Antero improperly deducted processing and fractionation costs from the royalties. The court determined that these costs were necessary to transform the gas into marketable form and thus could not be deducted under the lease agreement.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's decision. The court held that Antero could not deduct the costs of processing and fractionation from the landowners' royalties. The court found that the lease agreement's Market Enhancement Clause allowed deductions only for costs that enhanced the value of already marketable products, not for costs required to make the products marketable. The court concluded that the gas products first became marketable after processing and fractionation, and thus, these costs were not deductible. The court also noted that the Fourth Circuit had reached a similar conclusion in a related case involving the same defendant and lease terms. View "The Grissoms, LLC v. Antero Resources Corp." on Justia Law

Dayton Power & Light Company, along with other utilities, sought an RTO adder from the Federal Energy Regulatory Commission (FERC) as an incentive for joining a Regional Transmission Organization (RTO). Ohio law mandates that utilities join an RTO, which led FERC to deny Dayton Power's application, arguing that the adder is meant to incentivize voluntary actions, not those required by law. The Ohio Consumers’ Counsel (OCC) challenged the existing RTO adders for other Ohio utilities, leading FERC to remove the adder for AEP but not for Duke and FirstEnergy, citing the latter's comprehensive settlement agreements.The United States Court of Appeals for the Sixth Circuit reviewed the case. The court first addressed whether the utilities could challenge the voluntariness requirement of Order 679, concluding that they could because FERC's past practices did not clearly indicate a strict voluntariness requirement. The court then interpreted Section 219(c) of the Federal Power Act, agreeing with FERC that the best reading of the statute supports the requirement that RTO membership must be voluntary to qualify for the adder.The court also considered the utilities' preemption argument, which claimed that federal law should override Ohio's mandate for RTO membership. The court held that the Federal Power Act does not preempt Ohio law, as Congress did not intend to prevent states from mandating RTO participation, especially when such mandates align with federal goals of increasing RTO membership.Finally, the court found FERC's differential treatment of AEP, Duke, and FirstEnergy to be arbitrary and capricious. It noted that all three utilities' rates included a 50-basis-point RTO adder, whether explicitly approved or impliedly included in settlements. The court affirmed FERC's denial of Dayton Power's application and the removal of AEP's adder but reversed the decision to retain the adders for Duke and FirstEnergy, remanding for further proceedings. View "Dayton Power & Light Co. v. Federal Energy Regulatory Commission" on Justia Law

The case involves Michigan's electricity market regulations, specifically the Individual Local Clearing Requirement (ILCR), which mandates that electricity retailers in Michigan's lower peninsula procure a certain percentage of their capacity from within that region. Plaintiffs, including Energy Michigan and the Association of Businesses Advocating Tariff Equity (ABATE), challenged the ILCR on the grounds that it violates the dormant Commerce Clause by discriminating against interstate commerce.The United States District Court for the Eastern District of Michigan initially dismissed the Michigan Public Service Commission (MPSC) on Eleventh Amendment grounds but allowed the case to proceed against individual commissioners. The court denied summary judgment motions from both sides, finding that there were factual disputes regarding whether the ILCR discriminated against interstate commerce. After a three-day bench trial, the district court concluded that the ILCR did not violate the Commerce Clause.The United States Court of Appeals for the Sixth Circuit reviewed the case and determined that the ILCR is facially discriminatory because it requires electricity to be generated within a specific geographic region, effectively favoring in-state over out-of-state electricity. The court held that this discrimination necessitates strict scrutiny, which the district court did not properly apply. The Sixth Circuit reversed the district court's judgment and remanded the case for further proceedings to determine if the ILCR can survive strict scrutiny by proving it is the only means to achieve the state's goal of ensuring a reliable energy supply. View "Energy Michigan, Inc. v. Public Service Commission" on Justia Law

The case involves the Michigan Attorney General's attempt to shut down Enbridge’s Line 5 Pipeline, which runs underwater across the Straits of Mackinac between Michigan’s Lower and Upper Peninsulas. The Attorney General filed the case in Michigan state court in 2019, alleging violations of three state laws. Enbridge responded by moving for summary disposition, arguing that the complaint failed to state a claim on which relief could be granted. The state court held oral argument on those dispositive motions, focusing on preemption issues, including whether the Attorney General’s claims were preempted by either the Pipeline Safety Act or the federal Submerged Lands Act.In 2020, Michigan Governor Gretchen Whitmer issued a notice of revocation of the 1953 easement, calling for Line 5 to be shut down by May 2021, and simultaneously filed a complaint in state court to enforce the notice. Enbridge timely removed the Governor’s case to the United States District Court for the Western District of Michigan. The district court denied the Governor’s motion to remand, holding that it had federal-question jurisdiction. The Governor subsequently voluntarily dismissed her case.Enbridge removed the Attorney General’s case to federal court in December 2021, citing the district court’s order denying the motion to remand in the Governor’s case. The Attorney General moved to remand this case to state court on grounds of untimely removal and lack of subject-matter jurisdiction. The district court denied the motion on both grounds, excusing Enbridge’s untimely removal based on equitable principles and estopping the Attorney General from challenging subject-matter jurisdiction.The United States Court of Appeals for the Sixth Circuit reversed the district court's decision, holding that Enbridge failed to timely remove the case to federal court under 28 U.S.C. § 1446(b), and there are no equitable exceptions to the statute’s deadlines for removal. The case was remanded to Michigan state court. View "Nessel v. Enbridge Energy, LP" on Justia Law

In the case before the United States Court of Appeals for the Sixth Circuit, Jennings Maynard, a coal miner with severe respiratory issues, filed a claim for benefits under the Black Lung Benefits Act. After his death while the claim was pending, his widow, Elizabeth Maynard, filed a claim for survivor’s benefits. The Administrative Law Judge (ALJ) awarded benefits to Elizabeth Maynard on behalf of her late husband and as his surviving spouse. The Benefits Review Board affirmed this decision. The petitioner, Island Creek Coal Company, sought review of the award.The court denied the petition for review. The court explained that Maynard had worked in the coal mining industry for over forty-three years and had developed severe respiratory issues. Maynard's widow, Elizabeth, filed a claim for survivor's benefits after her husband's death. The ALJ awarded benefits to Elizabeth, both on behalf of her late husband and as his surviving spouse. The Benefits Review Board affirmed this decision.The court held that substantial evidence supported the ALJ's findings that Maynard was totally disabled due to his elevated PCO2 values and that the petitioner failed to provide persuasive contrary evidence. The court also found that substantial evidence supported the ALJ's conclusion that the petitioner failed to rebut the presumption that Maynard's respiratory impairment, which contributed to his total disability, arose out of coal mine employment. The court determined that the ALJ properly discredited the medical opinions offered by the petitioner's experts because these opinions were inconsistent with the regulations of the Black Lung Benefits Act and the Department of Labor's determinations. The court therefore denied the petitioner's request for review. View "Island Creek Coal Co. v. Elizabeth Maynard" on Justia Law

During World War II, the federal government played a significant role in American oil and gasoline production, often telling refineries what to produce and when to produce it. It also rationed crude oil and refining equipment, prioritized certain types of production, and regulated industry wages and prices. This case involves 12 refinery sites, all owned by Valero, that operated during the war, faced wartime regulations, and managed wartime waste. After the war, inspections revealed environmental contamination at each site. Valero started cleaning up the sites. It then sought contribution from the United States, arguing that the government “operated” each site during World War II. It did not contend that government personnel regularly disposed of waste at any of the sites or handled specific equipment there. Nor did it allege that the United States designed any of the refineries or made engineering decisions on their behalf.The Sixth Circuit reversed the district court. The United States was not a refinery “operator” under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. 9601–75. CERCLA liability requires control over activities “specifically related to pollution” rather than control over general pricing and product-related decisions. View "MRP Properties Co., LLC v. United States" on Justia Law

Wolverine transports refined petroleum products in its 700-mile pipeline system. These pipelines run from refineries in the Chicago area to terminals and other pipelines in and around Indiana and Michigan. Because Wolverine transports refined petroleum, a hazardous liquid, the company is subject to safety standards, 49 U.S.C. 60101, and falls into the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) regulatory orbit. A few years ago, PHMSA conducted a routine inspection of Wolverine’s records, procedures, and facilities and identified several issues. PHMSA sent Wolverine a Notice of Probable Violation, which acts as an informal charging document, and described nine potential violations of PHMSA’s regulations, including a dent with metal loss on the topside of a pipe segment, with respect to which Wolverine did not meet an “immediate repair” requirement. Wolverine missed a 180-day repair requirement for other deficiencies.The Sixth Circuit affirmed a $65,800 civil penalty. The court rejected Wolverine’s arguments that PHMSA’s action was arbitrary and violated its due process rights. Wolverine had adequate notice and, to the extent Wolverine believes another approach would better achieve PHMSA’s desired policy outcomes, its argument is one for resolution by PHMSA. View "Wolverine Pipe Line Co. v. United States Department of Transportation, Pipeline and Hazardous Materials Safety Administration" on Justia Law