The following
information is an update of recent, local, state, national, and international
legal developments relevant to shale gas.
BLM Natural Gas
Regulations Face Second Lawsuit from Montana and Wyoming
On November 18, 2016,
the states of Wyoming and Montana filed suit against the Department of the
Interior and the Bureau of Land Management (BLM) in response to new oil and gas
regulations (Wyoming and Montana v. Sally Jewell, 16-cv-285-S). The
lawsuit alleges that the BLM lacks the authority to promulgate the regulations.
The new rules entitled, Waste Prevention, Production Subject to Royalties, and
Resource Conservation, are intended to
“reduce waste of natural gas from venting, flaring, or leaks…” This is the
second lawsuit brought against the regulations. The first lawsuit was filed by
the Western Energy Alliance and the Independent Petroleum Association of
America (Western Energy Alliance and the Independent Petroleum
Ass’n of America v. Jewell).
Pawnee Nation of
Oklahoma Files Suit to Protest Oil and Gas Leases
On November 18, 2016,
the Pawnee Nation filed suit in federal
court against the Department of the Interior, Bureau of Indian Affairs, and the
Bureau of Land Management. (Pawnee Nation of Oklahoma v. Sally Jewell,
16-cv-679-JHP-TLW) The case was filed in protest of oil and gas leases and
drilling permits that were approved on Indian trust lands. The complaint
alleges that the approval of the leases violates the National Environmental
Policy Act, the National Historic Preservation Act, and the American Indian
Agricultural Resource Management Act. Concerns expressed in the complaint
include “surface disturbance, traffic, noise, air pollution, and accidents…”
Sierra Club Files
Antitrust Complaint Against NEXUS Pipeline
On November 16, 2016,
the Sierra Club filed a complaint with the
Federal Trade Commission alleging antitrust violations by DTE Electric Company
(DTE). According to the Sierra Club press release, the
pipeline project owned by NEXUS Gas Transmission, LLC, an affiliate of DTE,
will monopolize the market in Michigan and then raise consumer rates above
competitive levels. The complaint alleges that “DTE Electric already controls
47% of installed generating capacity owned by Michigan utilities,” and the
pipeline project negatively impacts competition in the energy market.
Oil and Gas Leases
Cancelled in Colorado
On November 17, 2016,
the Department of the Interior and the Bureau of Land Management (BLM)
cancelled 25 oil and gas leases in Colorado, according to a BLM press release. The
oil and gas leases were located in the Thompson Divide area and were issued
from 1995 to 2012. These leases “amount to less than ½ of 1 percent of
the active leases on public lands in the state of Colorado…” The BLM also
announced the full adoption of the settlement agreement for the Roan Plateau
Resource Management Plan which involved the closing of 17 oil and gas leases.
Center for Biological
Diversity Files FOIA Claim Against Railroad Administration
On November 21, 2016,
the Center for Biological Diversity (“Center”) filed suit against the Federal
Railroad Administration (FRA) for allegedly failing to publicly disclose documents
(Center for Biological Diversity v. Federal Railroad
Administration, No. 16-2308). The Alaska Railroad Corporation was given approval by
the FRA in 2015 and in September of 2016 they became the first railroad to ship
liquefied natural gas (LNG). The complaint alleges that the FRA violated the
Freedom of Information Act when they failed to provide documents in response to
the Center’s request for records on the decision to approve the transportation
of LNG by rail.
Physicians for Social
Responsibility Release Report on Health Effects of Hydraulic Fracturing
On November 17, 2016,
Physicians for Social Responsibility (PSR) released a report entitled “Compendium of Scientific, Medical, and Media Findings
Demonstrating Risks and Harms of Fracking.” The PSR report is a compilation intended to provide evidence from
medical writings, the government and industry reports, and other investigations
about the effects of hydraulic fracturing. The studies by PSR state that
inherent problems in gas extraction “can lead to water contamination, air
pollution with carcinogens and other toxic chemicals, earthquakes, and a range
of environmental and other stressors wrought on communities.”
Energy API Releases
Report on Impact of Hydraulic Fracturing on Drinking Water
On November 17, 2016,
Energy API (API) released a report called “Quantitative Support for EPA’s Finding of No Widespread,
Systemic Effects to Drinking Water Resources from Hydraulic Fracturing.” The report was
prepared by Catalyst Environmental Solutions for API as quantitative support
for the Environmental Protection Agency’s draft assessment which examined the
impacts of hydraulic fracturing on drinking water. The report states they found
“no direct correlation between the hydraulic fracturing process and quality of
drinking water supplies.”
National Renewable
Energy Laboratory Releases 2016 Electricity Outlook
On November 16, 2016,
the National Renewable Energy Laboratory (NREL) released their 2016 Standard Scenarios: A U.S. Electricity Sector
Outlook. The report discusses several
major areas in energy including “Declining costs and increasing deployment of
renewable energy, abundance of low-cost natural gas, [and] rapid growth in
rooftop photovoltaics (PV).” NREL estimates a growth in renewable energy
generation as well as growth in natural gas. In addition, the report shows a
decrease in carbon dioxide emissions, where emissions in 2015 were 21% less
than 2005.
Victoria, Australia
Introduces Bill to Ban Hydraulic Fracturing
On November 22, 2016,
the Andrews Labor Government introduced legislation entitled Resources Legislation Amendment (Fracking Ban) Bill 2016. The new bill is intended “to prevent the exploration and
mining of coal seam gas, to ban hydraulic fracturing and to impose a moratorium
on petroleum exploration and production…” The Office of the Premier for
Victoria stated in their press release that
the bill will also extend the moratorium on conventional drilling until 2020.
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Written by Jacqueline Schweichler
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