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.
Water Quality: Ohio EPA
Releases Storm Water General Permit Draft
On May 21, 2018, the
Ohio EPA released a draft permit for public comment that would regulate prevention plans for storm
water pollution related to horizontal drilling. The regulations contained in
the draft would not be affected by related federal exemptions and would only
cover construction that would affect five acres or more. The permit requires
the developer to provide a Horizontal Directional Drilling Contingency Plan.
The plan must include monitoring and notification procedures, a list of key
personnel, corrective action plans, drilling fluid additives and contingency
plans.
Pipelines: FERC Gives
Rover Permission to Begin Full Service on Second Mainline
On May 31, 2018, the
Federal Energy Regulatory Commission (FERC) approved the beginning of full service on Rover’s second mainline, which
is scheduled to be completed in late July. The pipeline
will carry natural gas from the Utica and Marcellus Shales through Ohio to
other parts of the country and Canada. In May 2017, FERC ordered construction to be suspended after 2 million gallons of drilling
fluid was released in wetlands near the construction. The current approval was
granted after FERC determined that Rover was in compliance with environmental
conditions based on ongoing inspections. According to FERC, restoration and
rehabilitation of the affected area is over 90% complete and is expected to be
finalized by the end of July 2018.
Municipal Regulation: PA
Supreme Court Invalidates Conditional Use Approval for Well Located in
Residential – Agricultural Zoning District
On June 1, 2018, the
Pennsylvania Supreme Court ruled that a conditional use had been improperly
approved for a shale gas well that was proposed for a Residential-Agricultural
zoning district. (Gorsline v. Board of Supervisors of Fairfield
Township v. Inflection Energy, J-13-2017). The zoning
ordinance in question neither expressly authorized nor prohibited the drilling
of gas wells. Thus, the drilling company
was required to obtain conditional use approval by establishing that drilling
was “similar to and compatible with” other uses in the R-A zoning district. The court ruled that the company failed in
this burden, rejecting the argument that gas wells constitute a “public service.” The court specifically stated that its opinion
“should not be misconstrued as an indication that oil and gas development is
never permitted in residential/agricultural districts...” To properly authorize gas development, municipalities
must amend their zoning ordinances to specifically address development in
residential/agricultural districts or ensure that the evidentiary record
supports any conditional use approvals.
Production and
Operation: Energy Information Administration Releases Natural Gas Monthly
Report
On May 31, 2018, the Energy
Information Administration (EIA) released their monthly natural gas
report using data from March 2018. According to EIA, natural gas production
increased by 11.2% from 71.6 Bcf/day in March 2017 to 79.6 Bcf/day in March
2018. The daily rate of production was the highest for any month since
EIA began to track production in 1973. Natural gas consumption levels in 2018
were 9.1% higher than 2017, including increases in residential, commercial,
industrial, and electric power deliveries. Natural gas imports decreased by
3.9% and exports increased by 5.5%. The increase in natural gas exports is
largely attributed to exports of liquefied natural gas, which has more than
doubled since March 2017.
"PUC judge halts Sunoco's Mariner East pipeline, yet again" - The Inquirer
"Dominion Energy gets permission to start Atlantic Coast Pipeline construction in W. Va." - Shale Gas Reporter
"Energy expert predicts crude oil prices may hit $85 a barrel this summer" - Shale Gas Reporter
"As energy companies look ahead, some owe debt to the oil bust" - Houston Chron
Connect with us on Facebook! Every week we will post the CASL Ledger which
details all our publications and activities from the week.
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
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