Energy Law
Energy law refers to laws focused on how we use electricity, petroleum, oil, water, coal, wind, the sun, and other resources. There are energy regulations at the federal, state, and local levels. Energy law encompasses many legal areas. This includes business, environmental, land use, and international law.
This article provides an overview of energy law. An experienced energy law attorney will offer legal advice and represent your interests. If you have questions about opportunities with energy resources, contact a local energy law lawyer.
Energy Law History
Energy law has a long history. The history relates to industry economics and environmental law. During early industrialization, a new demand for energy created a need for laws and regulations. These oil and gas laws manage resource extraction, distribution, and usage. Resource management remains one of the primary goals of energy law.
Energy laws make sure we have access to a reliable, sustainable energy supply. This balances with the need to minimize the negative environmental impacts.
The oil crisis of the 1970s prompted the creation of the U.S. Department of Energy. Increased management keeps the market competitive, finds new energy sources, and protects American interests. The Department of Energy delegates various tasks associated with public utilities. Federal agencies that regulate energy include:
- The Federal Energy Regulatory Commission (FERC)
- The Energy Information Administration (EIA)
- The Nuclear Regulatory Commission (NRC)
- The U.S. Environmental Protection Agency (EPA)
In recent decades, energy law has increasingly focused on sustainable energy sources. This relates to the need to combat climate change and reduce dependency on fossil fuels. National policies promote renewable energy, energy efficiency, and technological innovation.
The Sale and Licensing of Energy
Much of energy law relates to licensing energy rights. This includes the right to harness natural resources from private property and federal lands, sell energy, and explore new energy sources.
Federal agencies are responsible for licensing. Not everyone can have a permit to drill for fossil fuels on public lands or in the ocean. Government agencies are also responsible for wholesale energy prices.
Energy purchase contracts are commonly made between energy buyers and sellers. The contracts set out the terms of the agreement, including energy delivery and penalties for a breach of performance. The FERC regulates many power purchase agreements about interstate commerce.
Privately owned power companies are generally regulated at the state level. Public service commissions govern the cost of utilities and power operations. Public power companies are typically regulated by municipal governments and co-op boards.
Environmental Issues
Energy law and environmental law frequently cross paths. Environmental law often focuses on reducing energy usage and pollution. Federal agencies provide oversight to guard against environmental disasters like massive oil spills.
A recent environmental concern includes the use of fracking. Fracking is short for hydraulic fracturing. This involves forcing water and chemicals at very high pressure into shale rock deposits deep in the ground. Fracking releases natural gas trapped in shale. Byproducts are toxic waste. Environmental groups worry fracking may contaminate water sources and trigger tremors.
Energy policy involves identifying and harnessing clean energy technologies with the goal of sustainability. These include hydropower, geothermal power, solar energy, and wind energy.
The success of electric vehicles has created new incentives for the energy industry as well. This includes reducing carbon emissions and finding new energy sources.
Property Law
Owning a piece of land does not always mean owning the minerals beneath it. Energy rights can be separated and sold separately from ownership of the property itself.
The energy rights owner can use the land surface for oil drilling, extracting natural gas, or building mines. Property owners can also make access roads and other improvements for the energy sector. However, some limitations depend on the terms of the sale, including access duration.
The rule of eminent domain may also apply to land containing plentiful natural energy resources. Under eminent domain, the government may take privately owned land for the public’s benefit. However, property owners have certain rights before the government takes their land. For example, the government must offer to purchase the property first. If it takes the land, it must provide the owner with payment at fair market value.
Energy Law Rights
Energy law issues balance economic growth, energy security, and environmental responsibility. They will also play a large role in shaping the future.
A lawyer can help you reach a settlement or protect your rights at trial. You can discuss energy purchase agreements, toxic torts, eminent domain, and property ownership. Seek the help of an experienced energy law attorney for information about your legal rights.