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Supreme Court revives Rockport plant proposal

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The Indiana Supreme Court revived a controversial state-backed deal that would facilitate construction of a $2.7 billion coal-using synthetic natural gas plant in Rockport. The decision likely sets up another round of state regulatory review if developers choose to move forward.

Justices on Tuesday unanimously affirmed a contract between the Indiana Finance Authority and Indiana Gasification, LLC that a divided panel of the Court of Appeals invalidated. But the Court of Appeals’ differences over whether the contract was valid were rendered moot when the state agency and the private company amended the deal, the Supreme Court ruled.

In affirming the decision of the Indiana Utility Regulatory Commission to approve the contract, Chief Justice Brent Dickson cited language used in cases dating to 1904: “When the concrete controversy at issue in a case ‘has been ended or settled, or in some manner disposed of, so as to render it unnecessary to decide the question involved,’ the case will be dismissed.

“Appellants requested that this Court vacate the IURC’s Order in part because the Contract’s definition of (retail end use customers) improperly applied to industrial transportation customers; IFA and Indiana Gas have addressed this concern by amending the Contract approved by the IURC and rendering it unnecessary for this Court to decide the issue,” Dickson wrote.

The politically charged deal obligates the state to purchase synthetic natural gas for 30 years at guaranteed prices much higher than current market rates.

An unusual alliance of environmental groups, utilities and business concerns oppose the deal championed by former Gov. Mitch Daniels and cite it as a polluting example of crony capitalism. The project is backed by former Daniels adviser Mark Lubbers, whose connections to Justice Mark Massa resulted in calls for Massa to recuse himself, which he refused to do.

After the ruling, Jodi Perras of the Sierra Club’s Beyond Coal Campaign said the ruling was disappointing and called the project a “boondoggle.”

“The justices ignored serious flaws in the state’s contract to buy expensive coal gas and pass the costs on to Indiana natural gas customers. The contract doesn’t guarantee savings for ratepayers. With each passing day of low natural gas prices, it confirms even more that the contract will cost Hoosier ratepayers billions of dollars,” Perras said in a statement.

The final outcome for the contract and the fate of the proposed plant likely will be decided elsewhere in the Statehouse. Lawmakers this year enacted Senate Enrolled Act 494 that deferred to the Supreme Court and also put new regulatory hurdles before the proposal. Gov. Mike Pence also signaled opposition to the project, backed by hedge fund Leucadia National Corp.

After Pence signed SEA 494, Lubbers issued a statement that cast doubt on the plant’s future.

“We will work hard for a win if the Supreme Court takes the case,” the statement said. “If we win, however, only a clear reversal of position by the governor would enable the project to go forward.”

Justices ducked the change in the law that passed as the case was being argued on appeal.

“We decline the request of (Indiana Gasification) to address the validity and impact of Senate Enrolled Act 494 as part of this appellate proceeding,” Dickson wrote in a footnote.

The case is Indiana Gas Company, Inc. and Southern Indiana Gas and Electric Company, et al v. Indiana Finance Authority and Indiana Gasification, LLC, 93S02-1306-EX-407.
 





 

 

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  1. Should be beat this rap, I would not recommend lion hunting in Zimbabwe to celebrate.

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  4. All these sites putting up all the crap they do making Brent Look like A Monster like he's not a good person . First off th fight actually started not because of Brent but because of one of his friends then when the fight popped off his friend ran like a coward which left Brent to fend for himself .It IS NOT a crime to defend yourself 3 of them and 1 of him . just so happened he was a better fighter. I'm Brent s wife so I know him personally and up close . He's a very caring kind loving man . He's not abusive in any way . He is a loving father and really shouldn't be where he is not for self defense . Now because of one of his stupid friends trying to show off and turning out to be nothing but a coward and leaving Brent to be jumped by 3 men not only is Brent suffering but Me his wife , his kids abd step kidshis mom and brother his family is left to live without him abd suffering in more ways then one . that man was and still is my smile ....he's the one real thing I've ever had in my life .....f@#@ You Lafayette court system . Learn to do your jobs right he maybe should have gotten that year for misdemeanor battery but that s it . not one person can stand to me and tell me if u we're in a fight facing 3 men and u just by yourself u wouldn't fight back that you wouldn't do everything u could to walk away to ur family ur kids That's what Brent is guilty of trying to defend himself against 3 men he wanted to go home tohisfamily worse then they did he just happened to be a better fighter and he got the best of th others . what would you do ? Stand there lay there and be stomped and beaten or would u give it everything u got and fight back ? I'd of done the same only I'm so smallid of probably shot or stabbed or picked up something to use as a weapon . if it was me or them I'd do everything I could to make sure I was going to live that I would make it hone to see my kids and husband . I Love You Brent Anthony Forever & Always .....Soul 1 baby

  5. Good points, although this man did have a dog in the legal fight as that it was his mother on trial ... and he a dependent. As for parking spaces, handicap spots for pregnant women sure makes sense to me ... er, I mean pregnant men or women. (Please, I meant to include pregnant men the first time, not Room 101 again, please not Room 101 again. I love BB)

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