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. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

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  4. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  5. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.