Tuesday, January 22, 2019

Shale Law Weekly Review - January 22, 2019

Written by:
Brennan Weintraub - Research Assistant
Jackie Schweichler - Staff Attorney

The following information is an update of recent local, state, national, and international legal developments relevant to shale gas.

State Regulation: Colorado Supreme Court Declines to Impose Additional Rulemaking Responsibilities upon State Oil and Gas Agency
On January 14, 2019, the Colorado Supreme Court issued an opinion overturning a lower court ruling that required the Colorado Oil & Gas Conservation Commission (COGCC) to incorporate additional environmental considerations into its permitting decisions. (COGCC v. Martinez, No. 17SC297) (p. 1-2).  This case was brought by a group of youth activists who proposed a rule that would allow COGCC to issue permits for drilling only when there would not be cumulative adverse impacts to human health and the environment (p. 1-2).  The plaintiffs initially submitted the proposed rule for consideration by COGCC, arguing that it was consistent with the legislative purpose of the Colorado Oil & Gas Conservation Act (p. 13-14).  COGCC unanimously rejected the proposed rule, finding that it did not possess the statutory authority to issue such a rule under existing law and that it was already working with the Colorado Department of Public Health and Environment to address many of the concerns raised by the plaintiffs (p. 12-13). The Supreme Court agreed with COGCC and declined to require that the proposed rule be adopted.

Municipal Regulation: Colorado Municipality Approves Six-Month Moratorium on Drilling
On January 14, 2019, the town of Superior, Colorado approved an ordinance placing a moratorium on oil and gas drilling for a period of six months (p. 2-3). The ordinance was approved after receiving a notification from the Colorado Oil & Gas Conservation Commission regarding an (ultimately withdrawn) application to drill a well in the town (p. 1). The town Board of Trustees has stated that it will use the time of the moratorium to study whether the approval of such drilling operations will be “sufficient to promote and protect the public health, safety, and welfare” of the town (p. 2-3).

Pipelines: Fourth Circuit Declines to Review Virginia Permit for Atlantic Coast Pipeline
On January 14, 2019, the United States Court of Appeals for the Fourth Circuit issued an opinion denying a petition for review of a pipeline water permit (Appalachian Voices v. State Water Control Board, 2019 WL 177928) (p. 1).  The water permit was issued to the Atlantic Coast Pipeline by the Virginia State Water Control Board.  A coalition of environmental groups challenged the permit, alleging that the decision had been arbitrary and capricious (p. 3). The Court of Appeals disagreed, finding no indication that the agency did not consider all relevant factors or that it clearly made an error in judgment (p. 9).

From the National Oil & Gas Law Experts:

Pennsylvania Notices
Conservation and Natural Resources Advisory Council Meeting: January 23, 2019 - Department of Conservation and Natural Resources

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Thursday, January 17, 2019

Shale Law in the Spotlight – Atlantic Coast Pipeline: Overview of Litigation Regarding the Pipeline Construction (Part 2 of 3)

Written by Chloe Marie – Research Specialist

The Atlantic Coast Pipeline (ACP) project is a 600-mile underground pipeline project designed to carry natural gas from wells located in Harrison County, West Virginia, through Virginia to a terminal facility in Robeson County, North Carolina.  On January 9, we posted an article reviewing the timeline of actions taken by various federal and state regulatory entities involved with the construction of the pipeline. On January 11, we posted the first of three planned articles addressing legal challenges that have been filed opposing the proposed Atlantic Coast Pipeline (ACP) Project as well as related administrative actions taken by governmental entities in response to the legal challenges.  In this article, we will continue to address relevant litigation within the U.S. Court of Appeals for the Fourth Circuit and related administrative actions. 

Appalachian Voices et al. v. FERC in the U.S. Court of Appeals for the Fourth Circuit (Docket no. 18-1114)

On January 29, 2018, Appalachian Voices along with ten other environmental groups filed a joint petition for review against the Federal Energy Regulatory Commission (FERC) challenging a Certificate of Public Convenience and Necessity granted by FERC to Atlantic Coast Pipeline, LLC, for the construction and operation of the ACP project.

On February 16, 2018, FERC filed a motion to dismiss the petition for review asserting a lack of jurisdiction. FERC argued that the issued Certificate is not final based on the fact that requests for rehearing of that Certificate order are currently pending before it; therefore, qualifying the challenge of said petition as being “premature.” Atlantic Coast Pipeline, LLC, filed a similar motion on February 21, 2018.

On March 8, 2018, petitioners filed a motion for stay of the Certificate order and put forward two main arguments. First, petitioners criticized FERC as not properly assessing whether the proposed ACP is in the public interest because it based its findings “solely on Atlantic’s capacity contracts with its own corporate affiliates.” Petitioners added that “[i]n doing so, FERC ignored its own policy and refused to consider substantial evidence in the record showing that the precedent agreements between Atlantic and its affiliates are not reliable indicia of market demand.” Second, petitioners claimed that Atlantic Coast Pipeline, LLC, did not fully address the harm caused to 600 landowners, whose properties had been taken through the eminent domain process.

Therefore, petitioners claimed that FERC violated the Natural Gas Act in failing to support its conclusion that the proposed pipeline met the public convenience and necessity standard while also claiming that “[i]rreparable harm to the environment and Petitioners’ members is imminent.”

Petitioners did not succeed in their attempt to halt construction of the ACP project as the Court of Appeals for the Fourth Circuit granted both motions to dismiss the appeal for lack of jurisdiction on March 21, 2018.

Cowpasture River Preservation v. Forest Service in the U.S. Court of Appeals for the Fourth Circuit (Docket no. 18-1144)

On February 5, 2018, Cowpasture River Preservation Association and six other environmental conservation groups filed a joint petition before the U.S. Court of Appeals for the Fourth Circuit requesting judicial review of the U.S. Forest Service’s Special Use Permit issued to Atlantic Coast Pipeline, LLC, on January 23, 2018. This permit authorized the use and occupancy of National Forest System (NFS) lands for the construction and operation of the proposed pipeline as well as granted a right-of-way across the Appalachian National Scenic Trail (ANST).

Cowpasture also requested review of the Forest Service’s Record of Decision approving project-specific Forest Plan amendments to modify the Land and Resource Management Plans (LRMPs) for the Monongahela National Forest and the George Washington National Forest.

According to petitioners, the U.S. Forest Service violated the National Forest Management Act (NFMA), the National Environmental Policy Act (NEPA), and the Mineral Leasing Act (MLA) in issuing said Special Use Permit and Record of Decision as well as in granting a right-of-way across the ANST. First, petitioners argued that the Forest Service and Atlantic Coast Pipeline, LLC, did not properly evaluate the purpose of the proposed LRMP amendments pursuant to the substantive requirements for soil, riparian resources, and threatened and endangered species in the 2012 Planning Rule. Second, petitioners claimed that the Forest Service failed to “independently review” the FERC final EIS based on their records. And third, they alleged that the Forest Service did not have authority to grant a right-of-way across the ANST pursuant to the language of the MLA and National Trails System Act.

On December 13, 2018, the Court of Appeals sided with petitioners and ruled that the Forest Service violated the three federal statutes. The court noted “[t]he lengths to which the Forest Service apparently went to avoid applying the substantive protections of the 2012 Planning Rule – its own regulation intended to protect national forests – in order to accommodate the ACP project through national forest land on Atlantic’s timeline,” describing the Forest Service’s actions “striking and inexplicable.” Therefore, the court vacated the Special Use Permit and Record of Decision and remanded the matter to the Forest Service for further proceedings. In addition, the court concluded that the Forest Service did not have the authority to grant Atlantic Coast Pipeline, LLC, a right-of-way across the ANST. Furthermore, the court explained that “a thorough review of the record leads to the necessary conclusion that the Forest Service abdicated its responsibility to preserve national forest resources. This conclusion is particularly informed by the Forest Service’s serious environmental concerns that were suddenly, and mysteriously, assuaged in time to meet a private pipeline company’s deadlines.”

Defenders of Wildlife v. U.S. Dept. of the Interior in the U.S. Court of Appeals for the Fourth Circuit (Docket no. 18-2090)

On September 19, 2018 – for the second time during the course of the calendar year – Defenders of Wildlife, Sierra Club, and the Virginia Wilderness Committee challenged the U.S. Fish and Wildlife Service (FWS)’s Biological Opinion (BO) and Incidental Take Statement (ITS). This challenged BO and ITS was released by FWS on September 11, 2018, following a court order vacating the original FWS actions. The initial BO and ITS had been issued on October 16, 2017, and was the subject of prior litigation leading to a temporary halt of the pipeline construction. FERC authorized construction of the pipeline to resume on September 17, 2018, after the issuance of the second BO and ITS.

Petitioners argued that once again “[t]his second round of rushed decision-making introduced new errors.” As a result, on November 30, 2018, petitioners filed a motion to stay the September 2018 BO and ITS stressing that no less than four listed-species under the Endangered Species Act, including the Indiana bat, Clubshell, Rusty-patched bumble bee, and Madison cave isopod could suffer significant and irreparable harm due to the ongoing pipeline construction.

In their motion, petitioners alleged that FWS did not ensure that the mistakes that were made in the 2017 BO and ITS were not made again in 2018 – petitioners even argued that these mistakes had been exacerbated in the 2018 BO and ITS. Petitioners considered the grant of a stay to be in the public interest “because endangered species “are of ‘esthetic, ecological, educational, historical recreational, and scientific value to the Nation and its people’” and further declared that “even if Atlantic can make a showing of economic harm, that economic harm does not equate to harm to the public interest.”

On December 7, 2018, the U.S. Court of Appeals for the Fourth Circuit granted petitioners’ motion and stayed implementation of the 2018 BO and ITS issued by FWS. On the same day, Dominion Energy wrote to FERC Secretary Kimberly D. Bose indicating that it will cease all operations associated with the ACP construction in response to the Court of Appeals decision.


Additional resources on this topic from the Center for Agricultural and Shale Law:


 
 
This material is based upon work supported by the National Agricultural Library, Agricultural Research Service, U.S. Department of Agriculture.





Monday, January 14, 2019

Shale Law Weekly Review - January 14, 2018


Written by:
Brennan Weintraub - Research Assistant
Jackie Schweichler - Staff Attorney

The following information is an update of recent local, state, national, and international legal developments relevant to shale gas.

LNG Exports: FERC Gives Final Approval of Gulf Connector Expansion Facilities
On January 2, 2019, the Federal Energy Regulatory Commission sent a letter allowing Transcontinental Gas Pipe Line Company to place into service the last two facilities in its Gulf Connector Expansion project. The order allows the company to begin service on two compressor facilities, in San Patricio and Wharton counties in Texas. The facilities are part of a larger project to transport natural gas to LNG export terminals on the Texas coast. The project, now completed, will deliver 475,000 dekatherms a day of natural gas to two terminals, one at Corpus Christi Bay and one at Freeport Bay.

Pipelines: FERC Releases Environmental Assessment for Adelphia Gateway Project
On January 4, 2019, the Federal Energy Regulatory Commission (FERC) published the environmental assessment (EA) for the proposed Adelphia Gateway project.  FERC found that approving the project “would not constitute a major federal action significantly affecting the quality of the human environment.” The EA reviews Adelphia Gateway, LLC’s plans to purchase and repurpose existing pipelines and meter facilities.  Adelphia plans to convert the last fifty miles of a pipeline in southeastern Pennsylvania from oil to natural gas. The project will also involve building several new facilities, including two compressor stations and five meter and regulator stations along the length of the pipeline.

State Regulation: Governor Wolf Issues Executive Order Outlining New Emissions Goals for Pennsylvania
On January 8, 2019, Governor Tom Wolf of Pennsylvania issued an executive order reestablishing the Governor’s Green Government Council and outlining emissions reduction goals for the state. Under the executive order, the Council will be comprised of the Secretaries of the Departments of General Services, Environmental Protection, and Conservation and Natural Resources, as well as others chosen by the Governor.  The Council, as well as other state institutions, will seek to reduce greenhouse gas emissions by 26 percent spanning from 2005 to 2025.  From 2005 to 2050, the Governor plans to decrease greenhouse gas emissions by 80 percent.  The executive order outlines plans to decrease overall energy consumption, replace 25 percent of passenger cars with electric cars, and to procure renewable energy to offset 40 percent of the state’s electricity use.

Pipelines: Atlantic Coast Pipeline Receives Compressor Station Permit in Virginia
On January 9, 2019, the Virginia Department of Environmental Quality issued a permit to Atlantic Coast Pipeline (ACP) to construct a natural gas compressor station in Buckingham County, Virginia. The approved facility is one of three compressor stations that will eventually be built along the length of the Atlantic Coast Pipeline.  The Atlantic Coast Pipeline project is a 600-mile pipeline that will carry natural gas from West Virginia to markets in Virginia and North Carolina.  According to ACP, emissions at the Buckingham compressor station will be “50 to 80 percent lower than any other compressor station in Virginia.”

From the National Oil & Gas Law Experts:
George Bibikos,  At the Well Weekly, (January 4, 2019)

Jeremy Mercer and Devan Flahive, Reference to Oil & Gas Royalty Interest Deemed Sufficient Under the Marketable Title Act, Oil & Gas Law Report (January 7, 2019)

Charles Sartain, Ohio Land Professional Saved by the Legislature...Kind Of, Energy & The Law (January 14, 2019)

Conrad Hester and Skyler Sikes, Ignorance is Bliss: Archer v. Tregellas and the Discovery Rule, Oil and Gas Update (January 14, 2019)

Pennsylvania Legislation
SB 40: Referred to Environmental Resources and Energy (Jan. 11, 2019) - would impose a rebuttable presumption of liability to owners of pipelines when pollution or loss of water occurs at water supplies.

Pennsylvania Notices
Conservation and Natural Resources Advisory Council Meeting: January 23, 2019 - Department of Conservation and Natural Resources

Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks:

Connect with us on Facebook! Every week we will post the CASL Ledger which details all our publications and activities from the week.

Want to get updates, but prefer to listen? Check out the Shale Law Podcast! We can always be found on our Libsyn page, iTunes, Spotify, or Stitcher.


Check the January Agricultural Law Brief! Each month we compile the biggest legal developments in agriculture. If you’d like to receive this update via email, check out our website and subscribe!