The following
information is an update of recent, local, state, national, and international
legal developments relevant to shale gas.
PA Supreme Court
Declares Portions of Act 13 Unconstitutional
On September 28, 2016,
the Pennsylvania Supreme Court issued an opinion addressing
the constitutionality of Act 13 for a second time, striking down additional
provisions of the landmark oil and gas legislation. In the present opinion, the
court invalidated provisions of Act 13 involving the oversight of local oil and
gas ordinances by the Public Utility Commission [sections 3305-3309]; the disclosure
of information to health professionals for chemicals considered by oil and gas
operators to be trade secrets [section 3222.1(b)(10) and (11)]; the
notification to public water facilities by DEP following chemical or waste
spills [section 3218.1]; and the exercise of eminent domain authority by a
private corporation to acquire rights related to natural gas storage [section
3241]. (Robinson Twp. v. Commonwealth).
Maryland Proposes New
Regulations for Oil and Gas Exploration
On September 26, 2016,
the Maryland Department of the Environment unveiled proposed regulations
for oil and gas development. The regulations include a setback requirement of
2,000 feet from private drinking water wells and 1,000 feet from public water
supply wells. The regulations also include one year baseline monitoring of
water near the well pad. Additionally, there will be a presumption that any
contamination occurring within the first year of drilling will be the fault of
the well operator unless they can prove otherwise.
EIA Reports Significant
Increase in Production from Utica Shale
On September 23, 2016,
the Energy Information Administration published a report on recent
hydrocarbon production from the Appalachian Basin’s Utica Play. The data showed
that in 2012 only 104 wells existed in the Utica shale which produced 0.1
billion cubic feet per day (Bcf/d) of natural gas and 4,400 barrels per day
(b/d) of oil. By June 2016, the Utica play produced 3.5 Bcf/d of gas and 76,000
b/d of oil. The EIA also notes that while the Utica produces both oil and gas,
recent production is primarily natural gas.
OPEC Resolves to Limit
Oil Production for Market Stabilization
While attending a
meeting in Algeria, the Organization of the Petroleum Exporting Countries
(OPEC) agreed on September
28, 2016, to reconvene and determine limits for oil production. The OPEC
intends to put production within a range of 32.5 and 33.0 mb/d. The main
objective of the production limitations will be “to stabilize the oil market
and avoid the adverse impacts in the short- and medium-term.”
United Nations Special
Rapporteur Calls for Halt to Dakota Access Pipeline
On September 22, 2016,
the United Nations Human Rights Office of the High Commissioner published a statement regarding
the Dakota Access Pipeline. Victoria Tauli-Corpuz, the United Nations Special
Rapporteur says the United States should cease construction on the Dakota
Access Pipeline to protect drinking water, burial grounds, and sacred sites of
the Standing Rock Sioux Tribe. Ms. Tauli-Corpuz asks that the United States
consult with those affected by the pipeline and obtain their consent before
giving approval of the pipeline.
Canada Approves Pacific
NorthWest LNG Project with Conditions
The Minister of the
Environment for Canada, Catherine McKenna, issued a decision statement
approving the Pacific NorthWest LNG Project on September 27, 2016. Prior to the
decision, the Canadian Environmental Assessment Agency published their
environmental assessment of the NorthWest project and determined that there
would be “significant adverse environmental effects.” It was determined by the
Governor in Council that the adverse effects are justified; however, the
approval is subject to 190 legally binding conditions.
Written by Jacqueline Schweichler - Education Programs Coordinator
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