The following
information is an update of recent, local, state, national, and international
legal developments relevant to shale gas.
Penn Township Approves
Agreement to Resolve Apex Drilling Lawsuit
On December 5, 2016, the
Penn Township commissioners approved an agreement with Apex
Energy LLC for oil and gas operations. According to an article by Trib
Live, the three hundred million dollar lawsuit was brought by Apex against Penn
Township for rejecting its applications to drill. The agreement will allow Apex
to commence drilling operations subject to several conditions. The conditions
include the installation of sound walls, the creation of a 24 hour emergency
hotline, air quality monitoring, as well as other safety and environmental
protections.
DEP Files Appeal in
Drilling Regulations Case
On December 6, 2016, the
Pennsylvania Department of Environmental Protection filed an appeal to the
Pennsylvania Supreme Court in a drilling regulations lawsuit, according the the
DEP Newsroom. The
DEP is appealing the decision of the Commonwealth Court to enjoin certain
provisions of the new Chapter 78a drilling regulations. The lawsuit was
initially filed by the Marcellus Shale Coalition to protest the new rules The
rules set standards for the oil and gas industry to increase safety and protect
the environment.
PA Auditor General
Questions Impact Fee Spending
On December 6, 2016, the
Pennsylvania Auditor General released a report on their
audit of the impact fees given to local governments. The audit covers a four
year period and was conducted to determine whether the Public Utility
Commission appropriately distributed funds and to determine that counties used
the funds in accordance with Act 13. The report
suggests that Act 13 needs to be more specific and found that funds were being
“spent on questionable costs such as balancing budget deficits, salaries and
operational expenses, legal fees, and holiday celebrations.”
EIA Reports on Pipeline
Capacity Increase in New England
On December 6, 2016, the
U.S. Energy Information Administration released a report on the
increase in natural gas pipeline capacity in New England. Since 2010, there
have been no new pipeline projects in New England. Currently, two different
projects by Spectra Energy Corporation will be completed; one will be finished
by the end of December and the other will be complete in June 2017. The two
projects cost $972 million and $63 million and will carry natural gas from the
Appalachian Basin.
Study Estimates Effects
of Closed Injection Wells on Induced Seismicity
On November 30, 2016, a study was published
estimating how the decrease of wastewater injection in Oklahoma will affect
induced seismicity. According to the study, Oklahoma has reduced the number of
injection wells in operation by 40 percent. The study predicts that the number
of earthquakes in the area should “significantly decrease by the end of 2016
and approach historic levels within a few years.” The rate of earthquake
decrease will be slower in larger magnitude earthquake areas due to some
continued aftershocks. The article entitled “How will induced seismicity in
Oklahoma respond to decreased saltwater injection rates?” was published in
Science magazine.
DOE Laboratories Awarded
Funding for Shale Research
On December 5, 2016, the
National Energy Technology Laboratory announced the
awarding of six shale research projects to be given to the U.S. Department of
Energy (DOE) laboratories. The projects are intended to “investigate the
processes associated with hydrocarbon extraction from unconventional shale
reservoirs and lead to a better understanding of factors affecting prudent
resource development.” The projects are to consist of two year investigations
and will receive $4.8 million in funding. Some of the laboratory investigations
will look at the permeability of fractures in shale, how water is absorbed by
shale, and flow in shale pores.
Class Action Lawsuit
Against Oil and Gas Companies For Oklahoma Earthquakes
On December 5, 2016, a class action lawsuit
was filed in the District Court of Payne County, Oklahoma against oil and gas
companies alleging those companies were the source of the recent earthquakes.
The suit was filed by several residents of Cushing, Oklahoma and they seek
property damages, market value losses to real property, punitive damages, and
damages for emotional distress. The plaintiffs’ claim states that “By disposing
of fracking wastewater deep into the earth, Defendants introduced contaminants
into the natural environment that caused an adverse change to it in the form of
unnatural seismic activity.” (David and Myra Reid, et al. v. White Star
Petroleum LLC, et al., CJ-2016-543)
Australia to Begin
Hydraulic Fracturing Inquiry
On December 5, 2016, the
Northern Territory government in Australia released a statement announcing
the start of a planned hydraulic fracturing inquiry. The inquiry will examine
onshore unconventional reservoirs as well as other activities associated with
hydraulic fracturing. Because of comments from the public, the scope was
increased to include “water acquisition and treatment of wastewater.”
During the inquiry, hydraulic fracturing will continue to be prohibited.
The first meeting will be December 8th and will determine a schedule and
timeline.
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks
Recent ShaleLaw HotLinks
include:
“U.S. LNG exports hit record high”- LNG World News
New hydraulic fracturing law or extended moratorium in Maryland? - Washington Post
New easements acquired for Falcon Ethane Pipeline system - PghBizTimes
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Written by Jacqueline Schweichler - Education Programs Coordinator
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