Status on Mexico's Bio-Fuel and Renewable Energy Legislation
Submitted by Rogelio López-Velarde and Ruben Almaraz, López Velarde, Heftye y Soria

The Law for the Promotion and Development of Bio-fuels (the “Bio-fuels Law”) was published in Mexico’s Federal Register on February 1, 2008 and became effective on the following day. The Bio-fuels Law establishes the basis and guidelines to promote the production of bio-fuels and the development of infrastructure for its production, transportation, storage, distribution and marketing. Emphasis is made by the statute in the protection of the environment and reduction of air pollution emissions. The Bio-fuels Law also establishes measures for protection of Mexico's self-supply of critical agricultural products, such as corn.

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Texas Supreme Court Decision in Coastal v. Garza: Rule of Capture Bars Recovery of Drainage Damages for Subsurface Trespass from Hydraulic Fracturing
Submitted by Daniel M. McClure, William D. Wood and Robert S. Ballentine, Fulbright & Jaworski LLP

On August 29, 2008, the long-awaited decision in Coastal Oil & Gas Corp. v. Garza Energy Trust and its anticipated disposition of whether hydraulic fracturing that extends beyond lease lines constitutes common law trespass was delivered by the Texas Supreme Court. According to the opinion, written by Justice Nathan L. Hecht, damages based upon the drainage of natural gas from underneath the plaintiffs’ property caused by fractures extending across lease lines generated by hydraulic fracturing of a natural gas well on adjacent land, fail to support a claim for subsurface trespass because the rule of capture effectively bars the recovery of any such damages. The opinion, however, expressly declined to decide whether subsurface fracing could ever give rise to an action for trespass.

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Hurricane Ike: Far Reaching Winds

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Analysis of Supreme Court's Decision in Morgan Stanley Capital Group, Inc. v. Public Utility District No. 1 of Snohomish County

U.S. Supreme Court holds Mobile-Sierra presumption applies to electricity contract rates both before and after the contract becomes effective, regardless of whether rate is challenged by a purchaser or seller.

In Morgan Stanley Capital Group, Inc. v. Public Utility District No. 1 of Snohomish County, the United States Supreme Court addressed two issues (1) whether the Mobile-Sierra presumption that a contracted electricity rate is just and reasonable applies to challenges to the rate by purchasers as it does to challenges by sellers, and (2) whether the presumption applies only when the Federal Energy Regulatory Commission (FERC) has had an opportunity to review the contract rate before it becomes effective.

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Pipeline Company Settles with the EPA for $5.3 Million

Recently the Magellan Pipeline Company reached a settlement with the Environmental Protection Agency to resolve an ongoing lawsuit alleging illegal discharge of fuel. Magellan is the owner and operator of a 6,700 mile long petroleum pipeline network with 39 terminal facilities in the states of North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Wisconsin, Illinois, Missouri, Arkansas, Kansas, and Oklahoma that came under scrutiny after two investigations revealed potential inadequacies in Magellan’s pipelines.

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Texas Supreme Court holds Public Utility Commission Cannot Revise Contract Formed before Deregulation

In Texas Municipal Power Agency v. Public Utility Commission of Texas, the Texas Supreme Court addressed the issue of whether the Public Utility Commission of Texas had jurisdiction to revise the sales rate set by a contract negotiated before deregulation. 253 S.W.3d 194 (Tex. 2007). The court held that no such jurisdiction exists, and recently denied rehearing of the issues involved.

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