Jacqueline Schweichler -
Education Programs Coordinator
The following
information is an update of recent local, state, national, and international
legal developments relevant to shale gas.
Pipelines: PennEast
Pipeline Sues County of Northampton in Eminent Domain Proceeding
On March 5, 2018, the
County of Northampton issued a press release announcing that they will be involved in an
eminent domain lawsuit with PennEast Pipeline Company, LLC (PennEast). PennEast
is suing Northampton County to obtain the right of way for the 36-inch PennEast
Pipeline that will carry natural gas from Luzerne County, PA to Mercer County,
NJ. The Federal Energy Regulatory Commission approved construction for the
PennEast project in January 2018. The parcels of land at issue were preserved
under the Open Space program and Northampton County argues that they have the
duty to protect the land. Northampton County also disputes that PennEast is
offering fair market value for the properties and has requested a jury trial in
this lawsuit.
Wastewater
Treatment/Disposal: EPA Issues Permit for Injection Well in Plum Borough
On
March 7, 2018, the U.S. Environmental Protection Agency (EPA) issued a permit to Penneco
Environmental Solutions, LLC for an underground injection well in Plum Borough,
Pennsylvania. EPA issued public notice
and requested comment on the permit in June 2017. EPA subsequently
held a hearing in June 2017 which was attended by 200 people. Over 120 people
submitted 400 comments on the proposed issuance of the permit.
Landowner Royalties:
West Virginia Senate Passes Bill to Allow Drilling When Majority of Royalty
Owners Consent
On March 3, 2018, the West Virginia
Senate passed bill 4268 which allows oil and gas companies to drill on
property where at least three fourths of the royalty interest owners have
consented to development. The law would apply only where there are seven or
more royalty owners and the drilling operator has made reasonable efforts to
negotiate with all owners. Nonconsenting
owners may receive a pro rata share of production royalties while profits for
unknown or unlocatable owners will be deposited in a fund in the State
Treasury. The bill was passed in the Senate by a
vote of 23 to 11
and the bill now goes to Governor Jim Justice.
Pipelines: Public
Utility Commission Orders Halt for Mariner East 1 Pipeline
On March 7, 2018, the
Pennsylvania Public Utility Commission (PUC) issued an emergency order against Sunoco Pipeline L.P., ordering a temporary
shutdown for the Mariner East 1 pipeline (ME1). PUC issued this order after
several sinkholes were discovered along the path of the ME1. The order requires
Sunoco to suspend hazardous liquids transportation and run a line inspection
through the pipeline. Sunoco must keep operations suspended for 10-14 days in
order to conduct geophysical testing and analysis. Once corrective actions have
been completed, the PUC will determine whether operation of the pipeline may
continue.
LNG Exports: Cove Point
Facility Exports First Shipment of LNG
On March 1, 2018, the first shipment of liquefied natural gas (LNG) produced at the
Dominion Energy Cove Point LNG terminal was exported from the facility. The Cove Point
facility is located on the
Chesapeake Bay in Maryland and will operate 24/7 under a 20-year contract. The
facility receives natural gas from the Marcellus and Utica shale plays and has
a production capacity of 8.3 million gallons of LNG per day. The project began
in October 2014, cost $4 billion, and involved more than 10,000 craft workers
in construction. The Cove Point facility is one of two large LNG export
terminals in the United States, including Cheniere Energy’s Sabine Pass
terminal in Louisiana, according to Reuters. On March 5, 2018, the Federal Energy
Regulatory Commission (FERC) authorized Dominion Energy to commence service for the
Cove Point facility. FERC stated that the project has been satisfactorily
stabilized and is in compliance with their prior authorization order.
"IEA credits Beaver County cracker as part of new wave of domestic petrochemical dominance" - Pittsburgh Business Times
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