Written by:
Brennan Weintraub -
Research Assistant
Jackie Schweichler –
Education Programs Coordinator
The following
information is an update of recent local, state, national, and international
legal developments relevant to shale gas.
Methane Emissions: New General
Permits for Unconventional Wells Finalized
On June 7, 2018,
Pennsylvania Governor Tom Wolf and the Department of Environmental Protection announced final permit revisions for GP-5 and GP-5A permits. The stated
purpose for the new general permits is to reduce methane emissions and set
thresholds for volatile organic compounds, hazardous air pollutants, and
nitrogen oxides. The permit changes are
part of Pennsylvania’s methane emissions reduction strategy, which was announced in January 2016. The changes will affect unconventional
natural gas wells as well as compression, processing, and transmission
facilities. Both new permits will go
into effect August 8, 2018.
Production and
Operation: Court Rejects Company’s Request for Reconsideration in “Rule of
Capture” Decision
On
June 8, 2018, the Pennsylvania Superior Court denied a request by
Southwestern Energy Production Company to reconsider its case against a Susquehanna
County family who successfully sued the company for trespass and conversion
earlier this year (Briggs, et al. v.
Southwestern Energy Production Co. No. 1351 MDA 2017). The case hinged largely on the applicability
of the historic doctrine of the “rule of capture” to hydraulic fracturing. The court held that hydraulic fracturing could
constitute actionable trespass where subsurface fractures, fracturing fluid,
and proppant cross property boundary lines. According to StateImpact, Southwestern Energy
plans to appeal the case to the Pennsylvania Supreme Court.
State Regulation:
Pennsylvania House Passes Bill to Revise Conventional Drilling Standards
On June 5, 2018, the Pennsylvania House of Representatives passed a bill which seeks to reinstate provisions of the Oil and Gas Act of 1984 for conventional wells that were superseded by Act 12 of 2012. Under this legislation, conventional drillers would be subject to different environmental standards than are applicable to unconventional drillers. House Bill 2154 affects general requirements for underground gas storage, enforcement and remedies, funds, and various other provisions. The purpose of HB 2154 is to reduce the economic burden on smaller conventional producers to clarify and update current regulations. HB 2154 was introduced by Representative Causer and passed in the House by a vote of 111 to 84. The bill was referred to the Senate Environmental Resources and Energy Committee on June 8, 2018.
On June 5, 2018, the Pennsylvania House of Representatives passed a bill which seeks to reinstate provisions of the Oil and Gas Act of 1984 for conventional wells that were superseded by Act 12 of 2012. Under this legislation, conventional drillers would be subject to different environmental standards than are applicable to unconventional drillers. House Bill 2154 affects general requirements for underground gas storage, enforcement and remedies, funds, and various other provisions. The purpose of HB 2154 is to reduce the economic burden on smaller conventional producers to clarify and update current regulations. HB 2154 was introduced by Representative Causer and passed in the House by a vote of 111 to 84. The bill was referred to the Senate Environmental Resources and Energy Committee on June 8, 2018.
Methane Emissions: Court
Declines to Lift Stay of Waste Prevention Rule
On June 4, 2018, the
10th Circuit Court of Appeals refused to lift an injunction imposed by a lower court in the ongoing
legal case for the Bureau of Land Management’s (BLM) Waste Prevention Rule (Wyoming et al., v. Dept. of the Interior, No. 18-8027). The rule, Waste Prevention, Production Subject to
Royalties, and Resource Conservation was promulgated in November 2016 for the purpose of reducing
methane emissions from venting, flaring, and leaks during natural gas
production. Following the transition
from the Obama administration to the Trump administration, BLM announced they
would be reviewing the rule and delaying certain provisions. BLM then published a proposed rule in February 2018 that revised the Waste Prevention Rule. Soon after, Montana and Wyoming filed a motion
requesting a suspension of the deadlines within the original Waste Prevention
Rule, in light of the new proposed rule. The lower court granted their request and
issued a stay of the original Waste Prevention Rule in April 2018, stating that
it would be a “waste of judicial resources” to go forward with this case while
BLM revisions to the original rule are pending (Wyoming et al, v. Dept. of the Interior, et
al., No. 2:16-CV-0285-SWS).
For more information on this, please see
our Shale Law in the Spotlight article, Current
Legal Developments Relating to Bureau of Land Management (BLM) Rules on Methane
Waste Prevention and Hydraulic Fracturing.
International
Development: Cuadrilla Secures New Injunction Against Hydraulic Fracturing
Protesters
On June 1, 2018, the
High Court in Manchester, England approved a temporary injunction preventing protesters from trespassing on
one of Cuadrilla’s proposed drilling sites in Lancashire and from interfering
with vehicles entering or exiting the site. The injunction replaces the current injunction forbidding trespass until August 31, 2018.
Cuadrilla is a privately owned
exploration and production company headquartered in Lancashire. The company has been granted exploration
licenses for 600,000 acres in the United Kingdom.
Pennsylvania Legislation
Environmental Resources
and Energy (H)
Bill
2454 referred to Environmental Resources and Energy (would require
the amount of funds used annually by DEP to be set by the General Assembly)
(June 4, 2018)
Bill
2462 referred to Environmental Resources and Energy (provides for
registration of on-lot wastewater treatment system inspectors) (June 5, 2018)
Bill
952 referred to Environmental Resources and Energy (resolution urging
Congress to support legislation advancing the development of an Appalachian
storage hub for natural gas) (June 5, 2018)
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive ShaleLaw HotLinks
“Gas
glut in Permian sparks dilemma over how much to burn” - Rigzone/Bloomberg
“Proposed
permit fee increase in Pennsylvania not expected to slow drilling in state”
- SP Global Platts
“US
asks OPEC producers to pump more oil, no specific figure” - Rigzone/Reuters
“Oil
and gas workers thriving in Pennsylvania” - Shale Gas Reporter
“US
oil production to grow by more than 1 million barrels daily in 2018” - Oil
& Gas Investor
“State
legislators ask feds to support ethane storage hub in Pennsylvania” -
Pittsburgh Tribune-Review
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Check out this week’s
Shale Law in the Spotlight:
UPDATE: Current Legal Developments Relating to Bureau of Land Management
(BLM) Rules on Methane Waste Prevention and Hydraulic Fracturing
Stay informed with our
monthly Agricultural Law Brief located
here.
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