Alabama v. United States Department of Energy

206 F.3d 1345
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 6, 2000
DocketNos. 99-3065, 99-3066 and 99-3102
StatusPublished
Cited by1 cases

This text of 206 F.3d 1345 (Alabama v. United States Department of Energy) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alabama v. United States Department of Energy, 206 F.3d 1345 (10th Cir. 2000).

Opinion

ORDER

These matters are before the court on appellants’ petition for rehearing with suggestion for rehearing en banc. Upon review, the panel has determined rehearing is not warranted. Consequently, the petition is denied. We have decided, however, that amendment of our original Order and Judgment, filed on November 5, 1999, is appropriate to clarify certain issues. We have also determined publication is warranted. Accordingly, an amended published opinion is attached to this order.

The mandate issued on November 5, 1999 is recalled and reissued forthwith in accord with our amended disposition. A copy of the rehearing petition was circulated to all the active members of the court. No judge having called for a poll, the en banc suggestion is denied.

OPINION

EBEL, Circuit Judge.

Plaintiffs-Appellants challenged a decision by the Department of Energy; the District of Kansas denied their claims, and they now seek review in this court. Defendants-Appellees have moved this court to dismiss these appeals for lack of appellate jurisdiction, and Appellants have opposed these motions. We find that the Federal Circuit has exclusive jurisdiction over these claims pursuant to 28 U.S.C. § 1295(a)(ll)-(12), and Appellees’ motions to dismiss cases 99-3065, 99-3102, and 99-3066 are therefore GRANTED.

BACKGROUND

Plaintiffs-Appellants in cases 99-3065 and 99-3066 are the states of Alabama, California, Connecticut, Idaho, Indiana, Maryland, Michigan, Mississippi, Montana, Ohio, South Dakota, Vermont, Wisconsin, and Wyoming (the “States”). Plaintiffs-Appellants in case 99-3102 are the states of Delaware, Hawaii, Illinois, Kansas, Nebraska, Nevada, North Carolina, Rhode Island, and West Virginia, as well as the territories of Guam and the Virgin Islands (the “Jurisdictions;” the States and the Jurisdictions are collectively referred to as “Appellants”). Appellants sued Defendants-Appellees United States Department of Energy (“DOE”) and Chevron U.S.A. Inc. (“Chevron;” DOE and Chevron are collectively referred to as “Appellees”) in connection with a settlement agreement purporting to resolve the Stripper Well Litigation.1 That litigation concerned the [1348]*1348proper disbursement of over $1 billion in overcharge funds collected by DOE pursuant to crude oil price controls imposed under the Economic Stabilization Act of 1970 (“ESA”) and the Emergency Petroleum Allocation Act of 1973 (“EPAA”). In 1986, a multitude of interested parties, including the States and the Jurisdictions, entered into the Final Settlement Agreement (“FSA”), which apportioned these and subsequently recovered funds among DOE (40%), the fifty states and several territories (40%), and reserved the remainder to settle individual claims (primarily those of utilities and oil refineries). The FSA was approved by Judge Theis of the District of Kansas, pursuant to that court’s MDL 378 jurisdiction. Although intended to end this controversy, the FSA has itself been the subject of extended litigation.

At the center of the present case is a decision by the Department of Energy not to seek from Chevron some $500 million, which Appellants maintain should then be disbursed under the FSA. In 1992, DOE’s Economic Regulatory Administration (“ERA”) issued a Proposed Remedial Order (“PRO”) alleging that Chevron had improperly represented its status under the now-defunct Tertiary Incentive Program (“TIP”),2 and that it therefore must disgorge $124,989,588 it had received under the program (with interest, the sum exceeds $500 million). Chevron challenged the PRO and the matter was referred to DOE’s Office of Hearings and Appeals (“OHA”).

The OHA declined to enforce the PRO as a final Remedial Order, finding that “the ERA has failed to establish!] that Chevron was in fact unjustly enriched by its participation in the TIP as alleged in the PRO.” (OHA Decision at 12-13.) As a result, none of the Appellants received additional disbursements under the FSA. After the OHA issued its decision in 1996, a group of private parties, who stood to recover additional funds as individual claimants under the FSA, directly challenged the ruling in the District of Columbia District Court. That claim, however, was rejected by the Federal Circuit. See Consolidated Edison v. O’Leary, 131 F.3d 1475 (Fed.Cir.1997) (dismissing plaintiffs’ claim because the OHA’s decision was not reviewable); cf. Consolidated Edison v. O’Leary, 117 F.3d 538 (Fed.Cir.1997) (dismissing claims for lack of a private right of action and because the OHA’s decision was not justiciable).

In 1996, the States and Jurisdictions brought the present actions in the District of Kansas, challenging the same OHA decision. That court, however, dismissed all three suits. In its order denying both the States’ and the Jurisdictions’ motions to enforce the FSA (Nos. 99-3065 & 99-3102 before this court), the district court identified several reasons why these actions were improper. First addressing the [1349]*1349States’ claims, it cited the Federal Circuit’s recent decisions regarding this controversy and found that “OHA’s dismissal of the proposed remedial order against Chevron was a part of DOE’s prosecutorial function and as such, was unreviewable.” (Id. at IB.)

Discussing the Jurisdictions’ claims, the court engaged in an analysis of the FSA. The Jurisdictions alleged that Chevron “‘fraudulently misled’ the court and the parties [to the FSA] by misrepresenting its status as an entitlements seller under the draft 1981 Entitlements Notice [upon which the FSA distributions were based.]” (Id. at 4.) Specifically, the Jurisdictions argued that when Chevron claimed certain tax credits after DOE discontinued the Entitlements Program, it automatically de-certified itself as an entitlements seller under the TIP. (See id.) The court responded, however, that “[t]he jurisdictions assume that, in 1983, Chevron had to elect between a windfall profit tax refund and remaining on the entitlements list. There is nothing in the FSA requiring such an election.” (Id. at 15.) The court further found that “tax matters were excepted from the settlement by Proviso (E) to the Refiners Release,” and that “the FSA imposed no obligation on Chevron as a settling refiner to disclose its pending windfall profit tax refund claim.” (Id. at 16.) Thus, its denial of the Jurisdictions’ motion required a close inquiry into the terms of the FSA.

That same day, the district court issued a separate order dismissing the States’ original complaint (No. 99-3066 before this court). The court specifically incorporated its findings in the MDL order, and dismissed the States’ FSA claims on those grounds. (See Order of Dismissal at 2.) The States had also challenged DOE’s interpretation of the TIP regulations, DOE’s legal authority to issue or amend its regulations, and DOE’s compliance with the Administrative Procedure Act and the Department of Energy Organization Act. The court dismissed these claims for lack of standing or, alternatively, for lack of proper venue. (See id. at 1-4.)

The States and Jurisdictions now seek review in this court. Appellees DOE and Chevron filed motions to dismiss for lack of appellate jurisdiction in each case, alleging that exclusive appellate jurisdiction over these claims lies with the Federal Circuit. For the reasons stated below, we agree.

DISCUSSION

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Bluebook (online)
206 F.3d 1345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alabama-v-united-states-department-of-energy-ca10-2000.