The U.S. Court of Appeals for the District of Columbia Circuit has upheld a ruling by the U.S. District Court for the District of Columbia that found the Commodity Futures Trading Commission (CFTC) did not act illegally in promulgating Dodd-Frank regulations. The Investment Company Institute and the U.S. Chamber of Commerce brought the action against the CFTC, arguing that the adopted regulations applying to derivatives trading were unlawfully adopted and invalid. The district court “granted summary judgment in favor of the Commission. Because we agree with the district court that the Commission did not act unlawfully in promulgating the regulations, we affirm,” ruled the appeals court. Specifically, the two groups challenged a rule that would subject registered investment companies (RIC) engaged in derivatives trading to many of the Dodd-Frank requirements. Prior to 2003, RICs engaged in rare derivatives trading activities, but that has since changed, according to the CFTC. It is the agency’s latest legal victory with respect to its Dodd-Frank regulation of the $300 trillion.
Ruling
Articles from Ruling
West Virginia Court Clarifies ‘Surface’ Definition
West Virginia’s legal system continues to struggle with surface rights issues, with the state’s Supreme Court of Appeals finding recently that the term “surface” means just what it says and does not include underground resources.
NY Shale Backers Lose Hope, But Report Says Don’t
In the wake of a New York appellate court ruling that two local bans on oil and gas activities should be upheld, supporters of shale development in the Empire State worry that the damage may be done, regardless of how the bans fare through a possible appeal.
Shale Development Supporters in New York Fear Damage is Done
In the wake of a New York appellate court ruling that two local bans on oil and gas activities should be upheld, supporters of shale development in the Empire State worry that the damage may be done, regardless of how the bans fare through a possible appeal.
Industry Briefs
A lawsuit filed by Range Resources Corp. against a Texas couple that accused the company of contaminating drinking water with drilling activity should be heard in state district court in Weatherford, TX, the Texas Second District Court of Appeals in Fort Worth ruled recently. Landowners Steven and Shyla Lipsky sued Range in 2011 after the U.S. Environmental Protection Agency (EPA) issued an order that said Range was responsible for the contamination. However, EPA ultimately backed down from its claim (see Shale Daily, April 2). Range counter-sued the Lipskys and environmental consultant, Alisa Rich of Wolf Eagle Environmental, claiming that they conspired to incriminate the company. The Lipsky’s lawsuit against Range was thrown out, but Range’s counter-suit was allowed to proceed (see Shale Daily, Aug. 29, 2012). The case could still be heard in appeals court but only if all parties, including the trial court judge, agree to it by April 11. Range is seeking $3 million in damages. A Range spokesman said the company was still considering the court question, but is confident that the original ruling is correct and that Range’s claims should proceed to trial.
Pennsylvania Township Enacts Ordinance to Regulate Pipelines
In an unusual reach by local government, the Forward Township Board of Supervisors voted unanimously to enact an ordinance regulating natural gas transmission and gathering pipelines built in the municipality, located in Allegheny County, PA.
Appeals Court Rejects Challenge to Interior Leasing Delays
The U.S. Court of Appeals for the Tenth Circuit has upheld a lower court’s ruling supporting the Interior Department’s arguments that it is not required to immediately issue leases to oil and natural gas producers following purchases.
Appeals Court Rejects Industry Lawsuit on Issuance of Interior Leases
The U.S. Court of Appeals for the Tenth Circuit has upheld a lower court’s ruling supporting the Interior Department’s arguments that it is not required to immediately issue leases to oil and natural gas producers following purchases.
Gas-to-Coal Switching Said to Be Key to 2013 Natural Gas Prices
Gas-to-coal switching will be key to next year’s natural gas prices, with natural gas ruling in the first half of the year and coal gaining in the second half, according to Raymond James & Associates Inc.
CME Scraps Position Limits Revisions Following Court Action
Following last week’s ruling by a federal court in Washington, DC, throwing out the CFTC position limit rule, CME Group said Wednesday it is scrapping revisions to its current position limit rules, which the exchange operator had planned in order to comply with the new regulatory landscape.
