Editorial: Energy in California
01 August 2007
Our research into the energy industry in California has identified 19 lawyers from 13 firms with an established record advising major, independent and state energy companies and utilities.
The constantly evolving nature of the industry ensures that those listed on the following pages are involved in a variety of sectors: some focus on oil and natural gas and others devote the majority of their time to the electricity industry. The lawyers we list also have differing skill-sets and while a number concentrate on the representation of clients before the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Committee (FERC), others advise clients on transactions and dispute resolution. California also leads the way in the use of renewables and with Governor Schwarzenegger calling upon utilities to acquire 20 per cent of power used within the state from renewables by 2010, with this rising to 33 per cent by 2020, their use has become an increasingly important consideration. Accordingly a number of individuals in this chapter devote some time to the financing and development of renewable sources of energy.
A total of six firms boast two inclusions apiece in the chapter. James Squeri and Michael Day of Goodin MacBride Squeri Ritchie & Day LLP were among the most popular candidates. The firm was praised by one source as a “quite exceptional boutique for work before the CPUC”, while another noted: “if there’s a merger that requires CPUC permission, then they’re excellent.” Squeri served as legal counsel to the CPUC from 1975 to 1983 and consequently boasts a “prominent public utilities practice”. Day also has a background with the CPUC and among other positions served as acting general counsel to the commission. Praised as “very well qualified and respected”, he has acted as lead regulatory counsel in California to numerous energy companies and has played a major role in the creation of a competitive energy market in the state.
Davis Wright Tremaine LLP is another firm with a leading reputation for its work before the CPUC. Edward O’Neill served as assistant general counsel at the commission and now represents utilities, service providers, large-scale consumers, public agencies and consumer groups on a wide range of matters before it. Representative experience includes counselling an independent power producer on the sale of a power plant project to a private sector utility. Steven Greenwald was also consistently recommended. Sources noted that he “has a good following and maintains a well-respected energy practice”. Greenwald, like O’Neill, was also commended for his representation of clients before the CPUC with sources also noting his work on alternative energy projects such as geothermal, solar, biomass and wind. Greenwald counts Calpine, North America’s leading geothermal power producer, among his largest clients in this field. He has chaired the firm’s 40-strong energy practice for the past nine years and brings almost 30 years of experience of deals, regulatory proceedings, negotiations, litigation and dispute resolution to the firm.
Michael Hindus of Pillsbury Winthrop Shaw Pittman LLP comes recommended to researchers for his federal and state regulatory work on behalf of gas and electric utilities. He has worked extensively for Qatar Petroleum on LNG facilities within the US. Robert James is similarly well regarded and splits his time between the firm’s San Francisco and Houston offices. James’s practice has a significant financial bent and among other matters on the energy project side he has worked on the expansion of an oil production facility in Kazakhstan. Respondents to our survey also noted his extensive work on M&A transactions within the energy industry. Seen by sources as “a trusted adviser to Chevron”, James served as outside counsel on the company’s $18.5 billion acquisition of Unocal. The firm’s other notable energy clients include Valero and Tidelands Oil and Gas, to name but two.
Winston & Strawn LLP significantly bolstered its energy practice in June 2006 by hiring Jerry Bloom and Joseph Karp from White & Case LLP. The firm now boasts one of the most respected practices in the state dealing with both regulatory and administrative matters. Its expertise on project development and finance, M&A in the energy sector, litigation and bankruptcy was brought to our attention. Jerry Bloom served as counsel to the co-chair of the official creditor’s committee in the Pacific Gas & Electric Company’s Chapter 11 bankruptcy and was consistently endorsed by some of the industry’s leading players. Respondents noted that he “does a great job for his clients” and is “an expert in the representation of large gas-fired co-generators”. Electricity is at the heart of Bloom’s practice in which he specialises in both the development and operation of electric generation resources, whether these be traditional or alternative such as co-generation and renewables. Joseph Karp has a focus on the electricity industry and sources also highlighted his significant experience relating to natural gas. Karp has worked both domestically and internationally in these areas on transactions and project development matters. He also has significant experience working for the purchasers of power and developers on matters relating to biomass, wind, solar, geothermal and landfill gas, thus mirroring the firm’s strength in the renewables arena.
“Tough negotiator” Gordon Erspamer resides in the Walnut Creek office of Morrison & Foerster LLP. Erspamer was praised as “outstanding for energy litigation”, particularly in the electrical and oil and gas sectors, and he has worked on matters such as contracts and transmission, as well as the intersection between antitrust and energy law. Peter Hanschen is “very highly regarded” among our sources, who noted his broad energy practice. Hanschen co-chairs the firm’s energy practice group and aside from transactional and dispute resolution credentials he is also well known for his work on the regulatory side of the electric, and oil and gas industries. Representative experience in this field includes assisting Plains All-American Pipeline and Pacific Energy Partners obtain regulatory approvals to transfer the oil pipeline interests of Pacific Pipeline and Pacific Terminals to Plains All-American. Hanschen was also part of the MoFo team that represented Alaska in negotiations with producers concerning the construction of a pipeline to transport natural gas from the north slope of Alaska to markets in the rest of the US. He also brings impressive industry experience to bear on complex matters having served as general counsel of PG&E’s interstate pipeline operations as well as head of its regulatory legal section.
Edward Renwick at Hanna and Morton LLP is recognised as one of the most experienced practitioners in the state with a practice that spans litigation, transactional and regulatory matters. Renwick boasts an “excellent reputation” and his dispute resolution credentials are further highlighted by his membership of The American College of Trial Lawyers. His energy practice has a strong oil and gas flavour – respondents recommended him for upstream, midstream and downstream work. Sources also noted his work on renewables as well as his knowledge of California’s myriad environmental laws. Renwick’s partner Norman Pedersen spent four years working for FERC and he consequently has a great deal of experience when it comes to energy regulation on both state and federal levels. Respondents particularly noted his strength in the gas arena but he also maintains an excellent reputation for electric, hydroelectric, co-generation and independent power project issues.
Orrick Herrington & Sutcliffe LLP appears on the following pages thanks to firm managing partner for North America and head of litigation in the San Francisco office Joseph Malkin’s reputation. Rated as a “top-flight litigator”, Malkin was praised by one leading source as “the complete package”. Clients include PG&E, for whom he is said to be “a trusted adviser, giving guidance at the big-picture level”, and he has represented other companies such as Occidental Petroleum, San Diego Gas & Electric, Sempra Energy and Chevron to name but a few. Charles Read splits his time between the LA and DC offices of O’Melveny & Myers LLP and is said to possess an “outstanding FERC mind”. Read was praised for “big, complex, high profile litigation cases” and his work for Southern California Edison and its affiliates was noted. While a proportion of his time is spent in the oil and gas sector, he was strongly recommended for his knowledge of the electricity arena. Read also boasts a significant renewables practice and has participated in wind power transactions.
Christopher Ellison and his firm Ellison Schneider & Harris LLP are “go-to lawyers for electrical energy regulatory work”. Based in Sacramento, the firm is within easy reach of the California Energy Commission, before which they do a deal of their work. Ellison also has great experience before FERC as well as the CPUC and is said to be “a real expert on gaining permits”. According to one prominent player in the market, “no one who does what he does, does it quite as well.” Luce Forward appears thanks to the strong showing of John Leslie in our research. Leslie’s natural gas and electricity practice was noted, with one source commenting: “we see him a great deal at the CPUC.” James Bright and his firm Bright and Brown are “well known in the oil and gas industry and capable lawyers”, according to one respondent. Bright has over 30 years’ experience in the field and represents major oil and gas companies and utilities on litigation as well as the environmental ramifications of transactions within the energy industry. Praised as “one of the leaders for oil and gas” it was noted that “any list of the leading energy lawyers in the state would not be complete without him.” David MacCuish brings his broad energy practice to bear at Weston Benshoof Rochefort Rubalcava MacCuish LLP, a firm that is also well known for environment work. MacCuish has worked on numerous matters in fields such as wind, solar, geothermal, natural gas, coal and oil production and comes highly rated. Recent matters include settling an action for a natural gas producer that enforced a right of first refusal to purchase natural gas reserves. Among other matters he also represented the owners and operators of a large wind farm in an arbitration relating to the adequacy of the design of wind turbines. Barry Ogilby is another of California’s leading lights. Ogilby spent 15 years in-house with Exxon Corporation before joining Cooper White & Cooper LLP and brings significant industry experience to the table. He has a strong focus on energy and environment law and associated litigation, and has represented clients on matters such as permitting, licensing, emergency response and environmental law compliance issues. Ogilby recently represented Kinder Morgan Energy Partners LP, and its owner SFPP against a complaint and consent decree filed by various government agencies for the discharge of oil, natural resource damages and violation of the Clean Water Act. Before the lawsuit was filed the defendants agreed to pay $3.7 million in civil penalties, $1.3 million resource damages and $170,00 in agency response and future remediation monitoring costs. The companies also agreed to improve their spill prevention, response and reporting practices. Some of the remediation work has already been completed and restoration at the Suisun Marsh and Donner Pass sites is expected to be completed by autumn 2007.
