Written by:
Jacqueline Schweichler - Education Programs Coordinator
Jacqueline Schweichler - Education Programs Coordinator
Errin McCaulley -
Research Assistant
The following
information is an update of recent local, state, national, and international
legal developments relevant to shale gas.
Federal Lands:
California Sues BLM for Repeal of Hydraulic Fracturing Rule
On January 24, 2018,
California filed a lawsuit against the
Bureau of Land Management (BLM) over BLM’s repeal of its 2015 rule regarding
hydraulic fracturing operations on federal lands. The 2015 rule, among other
things, established new requirements concerning wellbore integrity, water
quality, and public disclosure of chemicals used in the hydraulic fracturing
process. On March 28, 2017, President Trump issued Executive Order 13,783 (82 Fed. Reg. 16,093)
ordering the Secretary of the Department of the Interior to review the 2015
rule. Citing high compliance costs, BLM concluded the 2015 rule was unjustified
and rescinded the rule on December 29, 2017. In its complaint, California
argues BLM’s repeal of the 2015 rule violates BLM statutory mandates, ignores
environmental considerations relating to hydraulic fracturing, and violates
several federal statutes, including the Administrative Procedure Act.
Pipelines: Louisiana
Court Rules that Record Laws Do Not Apply to Bayou Bridge Pipeline
On January 25, 2018, the
U.S. District Court for the Middle District of Louisiana refused to compel
Bayou Bridge Pipeline LLC to turn over pipeline project records because
they are a private, for-profit company, according to Pipeline & Gas Journal. According to the article, the judge states there are no
public funds at issue and, therefore, public record laws don’t apply here. The
article also states that the judge will allow fifteen days for the plaintiffs
to amend their complaint. The lawsuit was brought by several environmental groups that are concerned that the Bayou Bridge pipeline will
negatively affect the health of the forested swamps within the Atchafalaya
Basin. In their complaint, the
environmental groups argue that the permits and authorizations issued by the
Army Corps of Engineers are invalid.
Water Quality: Wyoming
Landowners Reach Settlement With Encana Over Groundwater Contamination Lawsuit
On January 24, 2018, a
Wyoming family reached a settlement with Encana Corporation in a case regarding
alleged well water contamination, according to Star Tribune. The
case was filed in 2014 by Jeff and Rhonda Locker who allege that Encana
negligently drilled oil and gas wells in the vicinity of the Locker’s home,
causing their well water to become contaminated (Locker et al v. Encana Oil
& Gas Inc, 1:14-CV-00131). The Lockers obtained water samples from
their well when they purchased their family farm in 1988 and later in 1992. The
second water sample showed that the total dissolved solids, sulfate
concentrations, and sodium concentrations had increased almost ten-fold. Encana
operates natural gas wells in the oil and gas reservoir under the Locker’s land,
known as the Pavillion Field. According to the Star Tribune article,
details of the settlement have not yet been released.
Air Quality: EPA Issues
New Guidance Memorandum Changing Hazardous Air Pollutant Standards
On January 25, 2018, the
U.S. Environmental Protection Agency (EPA) announced that the
reclassification of major sources of hazardous air pollutants in a new guidance memorandum. The EPA is withdrawing the “once in, always in” policy under section
112 of the Clean Air Act which required major sources to remain subject to the
control standards even if they reduced their emissions below the defined
standards. Under the new guidance memorandum, “sources of hazardous air
pollutants previously classified as ‘major sources’ may be reclassified as
‘area’ sources when the facility limits its potential to emit below major
source thresholds.” Major sources are defined as sources that emit at least 10
tons per year of hazardous air pollutants.
Production and
Operation: EIA Releases Reports on Natural Gas Consumption and Costs for 2018
and 2019
On January 25, 2018, the
U.S. Energy Information Administration (EIA) announced that 2018
and 2019 natural gas consumption in the U.S. is expected to increase while
natural gas and crude oil prices remain constant. For 2018, residential
and commercial natural gas consumption is expected to increase by 1.3 Bcf/d and
consumption will be similar in 2019. In addition, EIA expects that the
increase in dry natural gas production will exceed domestic consumption of
natural gas during this time period. Prices for U.S. gasoline at regular retail
are forecasted to average $2.57/gal in 2018 and $2.58/gal in 2019. Crude oil
prices are expected to average $60 per barrel in 2018 and $61/barrel in 2019.
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks
"House GOP looks to give FERC final say on natural
gas exports" - Washington Examiner
"Why the U.S. Is Buying Natural Gas From
Russia" - Bloomberg
"Technology to Help Make Pipelines Safer in the
Future" - PSU Extension
"Bigger wells, but more water" - Express News
“Superpads” taking over Marcellus Shale" - Shale Gas Reporter
"It’s official: China is now world’s No. 2 LNG
importer" - LNG World News
"Radium again found in Allegheny River and
tributaries" - Post-Gazette
"FERC to review pipeline certification policies” - Shale Gas Reporter
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Every week we will post the CASL Ledger which details all our publications and
activities from the week.
See our Global Shale Law Compendium and this week’s article, Shale Law Governance in Pennsylvania - Fiscal Code Legislation for 2009 to 2017.
Check out this week’s
Shale Law in the Spotlight:
Oil and Natural Gas Severance Taxes in the United States
(Indiana, Kentucky, Alabama, and Mississippi)
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