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PENNACO ENERGY, INC. v. ENVIRONMENTAL PROTECTION AGENCY
| Issue: |
Whether Montana may set water quality standards that unduly burden coal-bed methane production by requiring that produced water be purer than necessary to protect existing beneficial uses and, in some cases, substantially purer than water naturally occurring in the streams to which the produced water is to be discharged?
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| Plaintiffs: |
Pennaco Energy, Inc., Marathon Oil Co., Devon Energy Corp. (Plaintiffs-Appellees)
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| Defendants: |
U.S. Environmental Protection Agency (EPA); Robert Roberts, EPA Region 8 Administrator (Defendants-Appellants)
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| Intervenors: |
State of Wyoming, Williams Production RMT Co., Yates Petroleum Corp., St. Mary Land and Exploration Company, Anadarko Petroleum Co., Carlton Dewey, Mike Coulter, Jess Anderson, Joann Tweedy, and Charles Tweedy (Plaintiff-Intervenors); State of Montana, Tongue River Water Users’ Ass’n, and Powder River Basin Resource Council (Defendant-Intervenors)
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| Amicus Curiae: |
Citizens for Resource Development, represented by Mountain States Legal Foundation
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| Court: |
U.S. Court of Appeals for the Tenth Circuit (No. 09-8103)
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| Status: |
On January 7, 2010, the EPA filed a motion to voluntarily dismiss its appeal, which the Tenth Circuit granted the same day.
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| Next Event: |
None
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| History: |
In 2002, environmental groups demanded that Montana set new regulations for the discharge of water produced during recovery of coal-bed methane. In March 2003, Montana adopted new regulations for rivers and watersheds in the area where CBM is produced, which were approved by the EPA in August 2003. In May 2005, environmental groups demanded that Montana tighten its water regulations even further, which Montana did in March 2006. In June 2006, Montana submitted its new rules to the EPA for approval; however, the EPA has yet to approve the standards.
On April 25, 2006, coal-bed methane producers challenged the EPA’s approval of the Montana 2003 and 2006 water quality standards (No. 06cv100, D.Wyo.). On October 5, 2006, the district court consolidated various lawsuits on the issue.
On April 16, 2009, opening briefs were filed by Petitioners and Plaintiff-Intervenors. On April 27, 2009, with MSLF as its attorney, Citizens for Resource Development filed a motion for leave to file a friend of the court brief. On May 1, 2009, with MSLF as its attorney, Citizens for Resource Development filed its friend of the court brief. On July 9-10, 2009, a hearing on the merits of the case was held.
On October 13, 2009, the Court held for Petitioners and remanded the case to the EPA for full consideration of the record. On December 11, 2009, the EPA filed its notice of appeal.
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