The following information is an update of recent, local, state,
national, and international legal developments relevant to shale gas.
PA Superior Court
Affirms Ruling to Reform Deed Due to Mutual Mistake of Parties
On October 18, 2016, the
Superior Court of Pennsylvania affirmed the lower court’s order and ruled for
reformation of a deed for land to include a reservation of all oil, gas, and
mineral rights. (George v. George, Pa. Super. Ct. 2016) Patrick George had sold to his aunt and uncle, Anthony
and Suzanne George, property located in Washington County. The agreement of
sale for the property included a reservation of the oil, gas, and mineral
rights. However, the general warranty deed conveyed the land in fee simple with
no reservations. The lower court held that there was a mutual mistake and that
the intent of the parties included a reservation of the oil, gas, and mineral
rights, a holding which is now affirmed.
White House Task Force
Issues Final Report on Natural Gas Storage Safety
On October 18, 2016, the
Interagency Task Force on Natural Gas Storage Safety released their report with
recommendations for new safety procedures. The Task Force was created by the
White House as a response to the Aliso Canyon facility natural gas leak in
2015. The report recommends that gas storage operators evaluate the status of
their wells and establish risk management plans. The report also calls for
better understanding of the potential risks and advanced preparations to
promote a coordinated response to emergency situations.
New Guidelines Issued by
EPA for Oil and Gas Emissions
The Environmental
Protection Agency issued new non-binding Control Techniques Guidelines (CTGs) on October 20, 2016, regarding volatile organic
compound (VOC) emissions from oil and gas processes. These new guidelines offer
recommendations for state agencies to assist them in the reduction of VOC
pollution. The CTGs recommend technologies and approaches that are “widely available
at a reasonable cost” and can reduce venting of natural gas during the drilling
process.
EIA Releases October
Drilling Productivity Report
On October 17, 2016 the
U.S. Energy Information Administration released its Drilling Productivity Report with estimates for November’s oil and gas production.
According to the EIA, overall oil production is expected to decrease in the
major shale plays from 4.46 to 4.43 million barrels/day. In addition, U.S. gas
production is also supposed to decrease from 46.13 to 45.96 billion cubic
feet/day.
Dakota Access Pipeline
Equipment Damage Caused by Arson
As reported by Reuters,
on October 22, 2016, equipment used for the construction of the Dakota Access
pipeline was purposefully set on fire. The Dakota
Access Pipeline is intended for the
transport of crude oil from North Dakota to Illinois. There was approximately
two million dollars worth of damage done to the construction equipment. There
are currently no suspects.
Memorandum of
Understanding Signed Between Gazprom and India
On October 15, 2016, the
global energy company, Gazprom announced
the signing of a Memorandum of Understanding between Gazprom and the Director
of Engineers India. The agreement outlines the intent of the parties to explore
potential routes for a pipeline that would bring gas from Russia to India. The
agreement was signed during the India-Russia Annual Summit.
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