Oil and Gas
Sonnenschein has the privilege of serving many companies and individuals active in the oil and gas industry. Sonnenschein's attorneys and other professionals successfully represent oil and gas industry clients on leasing, environmental, natural resource, tax, and other regulatory and policy matters before federal, state, tribal, and local government agencies throughout the United States.
Areas of Focus:
Natural Gas
Sonnenschein’s energy attorneys have a comprehensive perspective on the natural gas industry's regulatory and competitive issues. Our team, which includes two former gas and oil legal advisors to two FERC commissioners, is currently pursuing a number of groundbreaking legal areas. They include the FERC's new policies on market-based and negotiated rates, pipeline methods to address imbalances, discounting practices and rate of return for interstate pipelines.
We represent a wide array of clients including interstate pipelines; marketers; local gas distribution companies; federal, state and local regulators; and industrial consumers. We have guided our natural gas clients successfully through major natural gas policy changes at the FERC including the unbundling of pipeline services (pursuant to Order 636) and, changes to pipeline rates, terms and conditions of service to promote greater competition and efficiency in the markets (pursuant to Order 637).
Members of Sonnenschein’s energy practice litigate cases for clients before state public utility commissions and frequently advise the regulators themselves on how best to structure competition programs in retail gas markets and maintain reliable, low-cost service.
Along with our regulatory analysis and litigation skills, we are adept at negotiating contracts for our natural gas clients. We often negotiate natural gas transportation contracts containing rate discounts well below the maximum rate levels on file by pipelines at the FERC.
We represent natural gas producers on the Outer Continental Shelf in all aspects of regulation of offshore and interstate pipelines and related facilities. We also represent local distribution companies in interstate pipeline rate, certificate and rulemaking proceedings and onshore pipelines and storage companies in the siting, development and licensing of new pipeline and storage projects.
Pipeline Siting and Regulation
Sonnenschein's attorneys have served as lead environmental and regulatory counsel to major interstate and intrastate natural gas and petroleum pipelines. We have assisted our clients in building new lines and converting existing pipelines from crude to refined petroleum products. We have been integrally involved in implementation of the Pipeline Safety Improvement Act and have been retained by pipeline clients to assist with OPA 90 enforcement and other compliance matters. We have provided advice to the petroleum pipeline industry on federal eminent domain authority and have assisted our pipeline clients in every aspect of pipeline siting on both public and private lands, including strategic planning, acquisition of rights-of-way and other special use permits, utility commission approvals, Endangered Species Act compliance, community relations, affected interest negotiations, and lobbying.
Government Contracting
Sonnenschein's Government Contracts attorneys provide counseling and litigation expertise to clients doing business with the federal government, and regularly represent petroleum refineries in all aspects of bidding and performing military jet fuel contracts.
Finance, Taxation, & Transactions
Sonnenschein has served as lead counsel to a major business process outsourcing firm with respect to its work for the North American oil and gas industry. We have represented private parties with working interests in the San Juan basin on income tax and transfer tax planning issues. We have also represented clients with substantial oil and gas interests on estate administration and valuation issues, including estate tax issues with the Internal Revenue Service.
Sonnenschein has supported our clients in numerous transactions in the oil and gas industry. The transactions range from structuring acquisitions for large, interstate oil facilities, to negotiation of gas supply and pipeline contracts, to advising international energy trading clients on derivatives and swaps, to privatization of energy projects in Europe. We are presently assisting a client on a project that will result in the acquisition of large oil reserves in the former Soviet Union and assisting the petroleum producing arm of a foreign sovereign in connection with a Canadian utility's petroleum fuel supply.
Protecting Intellectual Property
Sonnenschein has a large intellectual property practice and our attorneys have supported major refiners in seeking patent protection for refined fuel treatments and formulations. We also represented a leading developer of drilling technology in defending its patents and related intellectual property.
Bankruptcy Proceedings
Sonnenschein has represented numerous independent and several major oil and gas industry clients in connection with bankruptcy proceedings, usually on behalf of creditors or vendors. We recently represented a major oil and gas industry service company with more than 40 affiliates in its Chapter 11 reorganization in Houston. We have helped structure oil and gas transactions to minimize bankruptcy risk.
Litigation and Enforcement Defense
Sonnenschein is well known for its litigation practice, and our lawyers have successfully litigated environmental and other cases at all levels of the federal and state court system, from state trial court to the United States Supreme Court. We regularly defend clients in agency adjudicatory proceedings, including oil and gas clients in BLM regulatory proceedings. Recent oil and gas representations have involved fraud, trespass, fuel theft, price fixing, natural resource damages, and excise tax violations. Several Sonnenschein lawyers are former United States Department of Justice prosecutors with years of experience handling civil and criminal investigations as well as spearheading internal investigations initiated by corporate clients. We regularly respond on behalf of clients that have received subpoenas from state and federal law enforcement agencies and defend our clients in these proceedings.
Sonnenschein attorneys presented successful briefs to the California Court of Appeals and the California Supreme Court on behalf of the oil industry that allowed on and offshore drilling along the California coast and have litigated oil and gas contract and royalty cases dealing with exploration of the Anadarko basin in Oklahoma.
Clean Air Act Compliance
Sonnenschein's attorneys have represented energy and industrial clients in development of and challenges to numerous federal and state air pollution rulemakings. We regularly help clients obtain and defend construction and operating permits. We have helped many clients implement innovative, cost effective compliance programs, and we have been involved in emission trading since the mid-1970's. Sonnenschein has defended clients in virtually all forms of federal and state air pollution enforcement actions.
Contaminated Site Remediation and Management
Sonnenschein lawyers have represented energy and industrial clients involved in cleanup of contaminants from the environment for over 30 years. We routinely help clients respond to requests for information and subpoenas, work with other parties, negotiate allocation of parties' shares to cleanup, and make claims against other parties, including the United States. We have extensive experience defending enforcement actions, whether brought by governmental agencies or by citizens. We counsel clients nationwide on identification and evaluation of contaminated soil and groundwater, both in the context of voluntary and government-required cleanup actions.
Sonnenschein attorneys have defended and currently are defending a diverse range of toxic tort and environmental claims for clients in the oil and gas industries. Recent and ongoing cases involve claims relating to MTBE contamination. The firm has extensive experience directing risk assessment activities in litigation, settlement and transactions.
