Justia North Dakota Supreme Court Opinion Summaries

Environmental Law and Policy Center and Dakota Resource Council (“Appellants”) appealed from a district court judgment affirming the Public Service Commission’s order dismissing Appellants’ formal complaint on the basis of a lack of subject matter jurisdiction. This appeal arose from Meridian Energy Group, Inc.’s construction of a new oil refinery (“Davis Refinery”) in Billings County, North Dakota. In June 2018, Appellants filed a formal complaint with the Commission, alleging: Meridian was required to obtain a certificate of site compatibility from the Commission under N.D.C.C. ch. 49-22.1; and Meridian’s planned facility would have a capacity of refining 50,000 or more barrels per day (bpd). Appellants filed their complaint after the North Dakota Department of Health, now Department of Environmental Quality, granted Meridian a construction permit for a “55,000 bpd” oil refinery. The complaint sought a declaration that Meridian’s refinery was subject to N.D.C.C. ch. 49-22.1 and to the statutory siting process. The Commission determined the complaint stated a “prima facie case” under its pleading rule, and the Commission formally served the complaint on Meridian. Meridian asserted it was constructing a refinery with a capacity of 49,500 bpd, falling outside the Commission’s statutory jurisdictional threshold of 50,000 bpd. Meridian argued, as a result, the Commission did not have jurisdiction over this matter and the complaint must be dismissed. After review, the North Dakota Supreme Court concluded the Commission did not err when it dismissed Appellants’ complaint. The Court affirmed the district court’s judgment and the Commission’s order of dismissal. View "Environmental Law & Policy Center, et al. v. N.D. Public Svc. Commission, et al." on Justia Law

National Parks Conservation Association (“NPCA”) appealed a judgment affirming a final permit decision by the North Dakota Department of Environmental Quality, formerly the Department of Health Environmental Health Section, to issue Meridian Energy Group, Inc. an air quality permit to construct a refinery. In October 2016, Meridian submitted its initial application and supporting documentation to the Department for a permit to construct the Davis Refinery, as required under North Dakota’s air pollution control rules implementing the federal Clean Air Act. The Department received over 10,000 comments, with most of the substantive comments coming from NPCA, the National Park Service, and the Environmental Protection Agency. NPCA filed comments with the Department supported by its two experts’ opinions, asserting that Meridian’s oil refinery would be a “major source,” rather than a “minor source,” of air pollution and that the permit does not contain “practically enforceable” emissions limits under the federal Clean Air Act and North Dakota’s air pollution control rules implementing the Clean Air Act. After considering public comments and Meridian’s responses, the Department’s Air Quality Division recommended to the State Health Officer that the Department issue a final permit because the Davis Refinery’s emissions are expected to comply with the applicable North Dakota air pollution control rules. The North Dakota Supreme Court concluded the Department did not act arbitrarily, capriciously, or unreasonably in issuing the permit. View "Nat'l Parks Conservation Assn., et al. v. ND Dept. of Env. Quality, et al." on Justia Law

Continental Resources, Inc. appealed a district court judgment dismissing its declaratory judgment action against the North Dakota Department of Environmental Quality (“Department”). Continental’s action for declaratory judgment requested the district court find “that if an approved control device is installed and operating at an oil and gas production facility, the mere presence of an emission from a closed tank hatch or control device does not, in and of itself, establish a violation of N.D. Admin. Code 33-15-07-2(1).” The district court dismissed Continental’s declaratory judgment action after finding the Environmental Protection Agency was an indispensable party, the district court lacked subject matter jurisdiction, and the matter was not ripe for judicial review. While this appeal was pending, the Department moved to dismiss the appeal as moot. The North Dakota Supreme Court affirmed the judgment dismissing Continental’s request for declaratory judgment as not ripe for judicial review. View "Continental Resources v. N.D. Dept. of Environmental Quality" on Justia Law

In 2011, Plaintiffs Rhonda Pennington, Steven Nelson, Donald Nelson, and Charlene Bjornson executed oil and gas leases for property in McKenzie County, North Dakota. Each lease term was three years with a lessee option to extend for an additional year. The leases were assigned to Continental Resources in September 2014, and it exercised an extension option. The leases included a provision that the leases would not terminate if drilling operations were delayed by an inability to obtain permits. In May 2012, Continental applied for a drilling permit on a 2,560-acre spacing unit that included the lands covered by the leases. The 2,560 acres included lands inhabited by the Dakota Skipper butterfly, which was listed as threatened under the Endangered Species Act. Continental could not begin drilling operations until receiving federal approval. In August 2015, the U.S. Fish and Wildlife Service issued a biological opinion relating to the impact of Continental’s proposed drilling on the Dakota Skipper. On October 1, 2015, Continental proposed measures to minimize the impact of its operations on the Dakota Skipper. On October 21, 2015, Continental recorded an affidavit of regulation and delay, stating it had not yet obtained federal regulatory approval to drill, and the primary term of the leases was extended under the “regulation and delay” paragraph of the leases. The following day, Continental applied to terminate the 2,560-acre spacing unit and create a 1,920-acre spacing unit to remove the Dakota Skipper habitat. In November 2015, the Industrial Commission approved the 1,920-acre spacing unit. In January 2016, the commission pooled all of the oil and gas interests in the 1,920-acre spacing unit for the development and operation of the spacing unit. Following the January 2016 order, Continental began drilling operations. In August 2017, the Plaintiffs sued Continental, alleging the leases expired on October 25, 2015, and Continental’s delay in obtaining regulatory approval to drill did not extend the leases. Plaintiffs appealed a district court ruling the “regulation and delay” provision in their oil and gas leases with Continental Resources extended the term of the leases. The North Dakota Supreme Court determined the district court concluded the delay in obtaining drilling permits for the 2,560-acre spacing unit was beyond Continental’s control and was not because of Continental’s fault or negligence. However, the court did not address whether Continental acted diligently and in good faith in pursuing a permit to drill the 2,560-acre spacing unit for more than three years. Viewing the evidence and inferences to be drawn from the evidence in a light favorable to the Plaintiffs, a genuine issue of material fact existed as to whether Continental acted diligently and in good faith. The Supreme Court therefore reversed the district court’s judgment and remanded for further proceedings on that issue. View "Pennington, et al. v. Continental Resources, Inc." on Justia Law

Black Hills Trucking, Inc. appealed a judgment affirming a North Dakota Industrial Commission order assessing a $950,000 civil penalty and costs and expenses against it for illegally dumping saltwater on roads in Williams County, North Dakota. Black Hills was a Wyoming corporation in the business of transporting crude oil, produced saltwater, petroleum products, oilfield equipment and other materials. In 2014, Black Hills owned and operated trucks in North Dakota for the purpose of transporting oilfield waste. The Commission received a report from a security officer for Continental Resources, Inc., that he had photos and video of a Black Hills truck dumping substantial amounts of fluids onto roads near a saltwater disposal well. Commission staff examined the affected roads and collected a soil sample. The Commission also collected logs from the well which indicated a Black Hills driver had transported saltwater to the well on February 8, 2014. Black Hills challenged the penalty, arguing the Commission lacked jurisdiction over a discharge of produced saltwater on a public road occurring away from an oil and gas well site, disposal site, treatment plant, or other facility. The North Dakota Supreme Court concluded the Commission regularly pursued its authority and its findings and conclusions were sustained by the law and by substantial and credible evidence, and affirmed. View "Black Hills Trucking, Inc. v. N.D. Industrial Commission" on Justia Law

Landowners from the Buffalo area appealed a district court judgment affirming the Department of Health's decision to issue Rolling Green Family Farms an animal feeding operation (AFO) permit. The landowners argued the Department erred by issuing Rolling Green an AFO permit and by failing to reopen the public comment period after Rolling Green provided further information to supplement its permit application. Finding no reversible error, the North Dakota Supreme Court affirmed. View "Coon v. N.D. Dep't of Health" on Justia Law

Dunn County appealed a judgment declaring the Industrial Commission had exclusive jurisdiction to determine the location of oil and gas waste treating plants. The Supreme Court affirmed, concluding the County lacked the power to veto the Commission's approval of the location for an oil and gas waste treating plant. View "Environmental Driven Solutions v. Dunn County" on Justia Law

This case stemmed from plaintiff-appellant Leona Kuhn's improper disposal of debris from her house in the Napoleon city dump in late June 2013, after her house had been severely damaged by fire. The City of Napoleon maintains an "inert waste landfill" for its residents, located about two miles southeast of the city. The landfill was subject to the North Dakota Department of Health's rules and regulations, which permits only certain types of garbage in the landfill sorted into separate piles, some of which is burned or buried under the regulations. Kuhn appealed a district court judgment entered after an appeal from a municipal court conviction finding her guilty of violating a City ordinance for improperly disposing of refuse, and a subsequent court order denying her request for a written restitution order. The Supreme Court affirmed in part, concluding sufficient evidence supported Kuhn's conviction, but reversed Kuhn's sentence and remanded for clarification. View "City of Napoleon v. Kuhn" on Justia Law

Attorney General Wayne Stenehjem, on behalf of the State, appealed, and the National Audubon Society cross-appealed from a district court judgment dismissing the Attorney General's corporate farming enforcement action against Audubon and upholding the constitutionality of North Dakota's Corporate Farming Law, N.D.C.C. ch. 10-06.1. Upon review of the dispute, the Supreme Court affirmed the judgment, concluding the equitable defense of laches barred the State's divestiture claim. The Court declined to address the constitutionality of the Corporate Farming Law because the affirmative defense of laches provided an alternative basis upon which the case may be disposed.View "Stenehjem, ex rel. v. National Audubon Society, Inc." on Justia Law

John Miller and J.D. Miller Farming Association (collectively "Miller") appealed an order that affirmed the Walsh County Water Resource District's decision requiring Miller to remove unpermitted dikes from his property located in Forest River Township. Upon review of the matter, the Supreme Court affirmed, concluding Miller failed to establish that the District acted arbitrarily, capriciously or unreasonably, that there was not substantial evidence to support its decision, or that the District was estopped from requiring removal of the dikes. View "Miller v. Walsh County Water Resource District" on Justia Law