Commonwealth Court Stays
New Pennsylvania Drilling Regulations
On November 8, 2016, the
Pennsylvania Commonwealth Court imposed a stay on the new Pennsylvania drilling
regulations, as
reported by PowerSource. The
regulations were intended to “set performance standards for surface activities
associated with the development of unconventional wells and to prevent and
minimize spills…” In response to the new rules, the Marcellus Shale Coalition
filed suit on October 13, 2016. (Marcellus Shale Coalition v. DEP, 573 MD
2016).
10th Circuit to Hear
Appeal on Hydraulic Fracturing Rules in January
On November 10, 2016 the
10th Circuit Court of Appeals scheduled a hearing
for January 17th to determine whether to reinstate the Bureau of Land
Management's (BLM) hydraulic fracturing rules. The rules would address
development on federal lands by requiring public disclosure of chemicals used
in hydraulic fracturing, imposing stricter well integrity requirements, and
adding containment requirements for flowback fluid. In June, the U.S. District
Court in Wyoming found the BLM lacked the authority to promulgate the new
regulations (State of Wyoming v. U.S. Department of the Interior,
2:15-cv-00043-SWS).
Wyoming Department of
Environmental Quality Releases Final Pavillion Report
On November 7, 2016, the
Wyoming Department of Environmental Quality released their final report on the water
well study in Pavillion, Wyoming. The report did not find sufficient evidence
to indicate hydraulic fracturing fluid rose to the depths of water-supply
wells. In addition, they determined any gas discovered in water wells was
caused by natural gas migration. Overall, the report found “it is unlikely that
hydraulic fracturing has caused any impacts to the water-supply wells.”
Oklahoma Corporation
Commission Continues to Close Injection Wells
On November 8, 2016, the
Oklahoma Corporation Commission released their official advisory for Cushing
after a 5.0 magnitude earthquake struck the area November 6th. The advisory
covers 58 wells and any wells within six miles of the earthquake’s original
location have been ordered to shut down. The advisory notes that this is only
an initial response plan and that “work is underway on a broader plan that will
encompass a greater area and more Arbuckle disposal wells.” The deadlines for
shut-in and volume limit compliance are November 14th and 21st, respectively.
In addition, Oklahoma Governor Mary Fallin has declared a state of emergency
for Payne County.
U.S. Fish and Wildlife
Service Issues Final Rule on Management of Oil and Gas Rights
On November 10, 2016 the
Fish and Wildlife Service promulgated oil and gas regulations which will go
into effect December 14, 2016 (50 CFR Parts 28 and 29).
The new rules will govern non-Federal oil and gas rights outside of Alaska. The
regulations are intended to provide regulatory guidance to oil and gas
companies and “ensure that non-Federal oil and gas operations are conducted in
a manner that avoids or minimizes impacts to refuge resources.”
National Park Service
Updates Regulations for Private and State Owned Oil and Gas Rights
The National Park
Service on November 3, 2016 issued a press release
announcing updated oil and gas regulations. The
regulations, specifically known as 9B regulations, have not been updated since
their implementation 37 years ago. The changes will eliminate provisions
exempting the majority of oil and gas operations from the 9B regulations. In
addition, the changes will eliminate the bonding cap and give authority to law
enforcement staff to issue citations. Lastly, the National Park Service is now
authorized to require compensation when oil and gas operators access land
outside their boundary rights.
Southern Ute Indian
Tribe Settles with Government on Hydraulic Fracturing Rules
On November 4, 2016, a settlement agreement
was struck between the Southern Ute Indian Tribe, the Department of Justice,
and the Bureau of Land Management (BLM). In 2015, the Southern Ute Indian Tribe
sued to challenge the BLM’s new hydraulic fracturing rules, arguing that their
own rules supersede the BLM’s rules. The settlement allows the Southern Ute
Indian Tribe, while still working with the BLM, to act as the primary oil and gas
regulatory authority.
U.S. Chamber of Commerce
Releases Report on the Economics of Hydraulic Fracturing
On November 4, 2016, the
U.S. Chamber of Commerce released a report entitled “What if… Hydraulic Fracturing was Banned?” The report is part of the Energy Accountability Series
which examines political stances from campaigning politicians by taking “a
substantive look at what might have happened in the past - or could happen in
the future…”
Canadian Court Overturns
Approval for Gas Corporation Takeover
On November 4, 2016, the
Court of Appeal of Yukon reversed the Supreme
Court of Yukon’s decision, holding the agreement between ExxonMobil Corporation
and InterOil Corporation was not shown to be “fair and reasonable.” (InterOil
Corporation v. Mulacek, 2016 YKCA 14) The agreement involved the takeover
of InterOil by ExonMobil. ExxonMobil had offered $45/share and both the boards
of the companies had unanimously agreed to the arrangement. Phil Mulacek,
previously the chief executive officer of InterOil, brought this case as a
shareholder, arguing that the offer is “vastly inadequate.”
Recent ShaleLaw HotLinks include:
Trump Impact on Oil and Gas - Bloomberg
New representatives may bring renewed plans for the Keystone XL pipeline - Huffington Post
Written by Jacqueline Schweichler - Education Programs Coordinator
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