Energy Legal Blog

A final rule that tightens and standardizes credits practices for organized wholesale electricity markets — independent system operators (ISO) and regional transmission organizations (RTO) — was issued by FERC October 21. (more…)

As applied to a major modification made to a cycling or peaking — as opposed to a baseload — power plant, a three-judge panel of the US Court Appeals for the Seventh Circuit in United States v. Cinergy Corp. ruled inadmissible the Environmental Protection Agency’s customary Clean Air Act (CAA) measure to determine whether the modification increases potential polluting emissions and therefore requires a pre-construction permit under the CAA’s New Source Review (NSR).  This unprecedented ruling may have the effect of exempting many, if not most, non-baseload plants from pre-modification permitting, including the requirement that plant owners install the best-available control technology in connection with a major modification. (more…)

Federal Judge Martin Feldman of the Eastern District of Louisiana issued a decision on October 19, 2010 overturning the Department of Interior’s (DOI) notice to lessees No. 2010-05 (“NTL-05″).  Ensco Offshore Co v. Salazar, No. 10-1941 (E.D. La. filed Oct. 19, 2010). The Court determined that, in issuing NTL-05, the government failed to comply with the requisite procedural requirements and, therefore, ruled that NTL-05 has no legal force or effect.  However, given that DOI has already codified most of the requirements of NTL-05 in an interim rule, the Court’s ruling may have little actual impact. (more…)

Secretary Salazar and Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) Director Bromwich lifted the deepwater drilling moratorium on October 12, 2010 and declared the Department of the Interior ”open for business.” While the moratorium may officially have been lifted, deepwater drillers could face the same predicament as shallow water drillers – a de facto drilling moratorium.  (more…)

FERC has raised the price cap in Western Electricity Coordinating Council (WECC) spot power markets from $400/MWh to $750/MWh, aligning it with the bid cap in place for the California Independent System Operator Corporation (CAISO) spot markets.  FERC also ordered that the WECC cap climb to $1000/MWh on April 1, 2011, when the CAISO price cap is likewise scheduled to rise to $1000/MWh. (more…)

Department of Interior Secretary Ken Salazar launched on October 1 the Office of Natural Resources Revenue (ONRR). This new office, which used to be called Minerals Revenue Management (MRM) and was part of the former Minerals Management Service (MMS), will be relocated to another part of the Department, will keep the same staff, and just like its predecessor, will be responsible for collecting and disbursing revenues from energy production on Federal and tribal lands, and on the Outer Continental Shelf. Like MRM, ONRR will also conduct auditing, compliance, investigation, enforcement and asset management for offshore and onshore Federal and tribal lands. The majority of ONRR’s operations will continue to be run out of the Denver Federal Center located in Colorado. Thus, the creation of ONRR is little more than a name change, as the same functions will be performed by the same staff. (more…)