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.
Pipelines: Native American Tribes Sue U.S State
Department Over Keystone XL Pipeline
On September 10, 2018, the Rosebud Sioux and the Fort
Belknap tribes in South Dakota and Montana
sued the U.S. Department of State (Department) in the U.S. District Court
for the District of Montana (Rosebud Sioux Tribe, et al. v. U.S. Department
of State). The tribes argue in the complaint that the agency
improperly issued a presidential permit for the Keystone XL pipeline project.
They allege in the complaint that Department failed to consider potential
environmental effects and cultural impacts on tribal lands in violation of the
National Environmental Policy Act and the National Historic Preservation Act.
In addition, Department originally denied the pipeline permit in 2015,
but approved the permit in 2017 with “no new information to support its
contrary decision.” The plaintiffs
allege that by not providing an explanation, Department violated the Administrative
Procedure Act.
Wastewater Treatment / Disposal: Pennsylvania
Commonwealth Court Upholds Fine for Release of Wastewater
On September 10, 2018, the Pennsylvania Commonwealth Court
issued an
opinion affirming the decision of the Pennsylvania Environmental Hearing
Board, which imposed a $1.1 million fine against EQT Corp. (EQT Production
Co., v. Dept of Envtl. Protection, 2018 WL 4289310). The Hearing
Board imposed the fine after determining that EQT had violated the Clean
Streams Law and related environmental regulations. From April 30, 2012,
to September 27, 2012, EQT was determined to be responsible for widespread
contamination from a wastewater pond built on a shale gas drilling site in
northern Pennsylvania. Wastewater was released through a damaged liner
and seeped into nearby springs and streams.
The court found that EQT had acted recklessly in the design and
construction of the pond and unnecessarily delayed in addressing the problem.
Federal Lands: U.S. Forest Service Announces Plans to
Streamline Drilling Permits in National Forests
On August 31, 2018, the U.S. Forest Service provided
advance notice that it will be proposing revisions to the current Oil and
Gas Resources regulations (36 CFR 228, subpart E). The purpose of the
change will be to streamline the requirements for oil and gas drilling in
national forests. According to the
notice, the agency intends to remove redundant language, remove confusing
options, and align the permitting process with the Bureau of Land Management.
The purpose of these changes is to decrease permitting times in order to
promote domestic oil and gas production. Comments on
the notice will be accepted until October 15, 2018.
Methane Emissions: EPA Proposes Changes to Methane Gas
Emissions Regulation
On September 11, 2018, the Environmental Protection Agency
(EPA)
proposed amendments to its New Source Performance Standards for oil and gas
producers. The changes will affect the 2016 rule, Oil
and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified
Sources, 40 CFR Part 60. The proposal includes a number of
changes to the 2016 final rule, including reduced monitoring frequency at well
sites. The proposed changes would require producers to conduct monitoring
surveys only annually, rather than semi-annually. In addition, EPA intends to align these regulations
more closely to existing state programs. The agency predicts that these
changes could reduce regulatory costs by up to $484 million from 2019 to 2025.
Methane Emissions: Virginia Announces Plan to Reduce
Methane Leaks from Natural Gas
On September 12, 2018, the Virginia Governor’s office
announced the state’s intention to establish a new set of regulations to
reduce methane emissions from natural gas infrastructure in the state. The
press release stated that the initiative will be headed by the Virginia
Department of Environmental Quality, which will spend the next 120 days
consulting with experts and industry to develop a plan. This action follows
several initiatives by Governor Northam to address climate issues in the state,
including ocean acidification and carbon emissions from the transportation
sector.
Production and Operation: EIA Releases September
Short-Term Energy Outlook
On September 11, 2018, the U.S. Energy Information
Administration (EIA) released its Short-Term
Energy Outlook. The report provides production and inventory
estimates for liquid fuels, natural gas, electricity, coal, renewables, and
emissions. For the month of August, global crude oil prices fell initially but
rose in the second half of the month for an overall increase. Finished
motor gasoline production was higher than the August 2017 average, while
consumption declined. Natural gas
markets experienced low inventories due to high residential and commercial
consumption, as well as growth in exports for liquefied natural gas and
pipelines.
From the National Oil & Gas Law Experts:
Charles Sartain, Choice
of Law Matters in an Oilfield Indemnity Suit, Gray Reed (September 13,
2018)
John McFarland, "Royalty
Lease" - Lessor Beware, Oil and Gas Lawyer Blog (September
17, 2018)
Pennsylvania Notices
Upcoming Meetings: Senate Environmental Resources &
Energy meeting (September 25, 2018)
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive
ShaleLaw HotLinks:
"US
Shale Boom Begins To Cool" - Hart Energy
"Permian
Oil Auction Gets Record $1 Billion as Bidding Soars" - Bloomberg Quint
"Extension
of natural gas line to Williamsport could start next month" -
Herald-Mail News
"More
than half PA gas wells used ‘secret’ chemicals for fracking or drilling, report
says" - State Impact
"Factbox:
"Hurricane Florence winds and flooding to disrupt US East Coast energy,
commodity markets" - SP Global Platts
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This week we published a new Shale Law in the Spotlight
article: Overview
and Timeline of Legal Developments Relating to the Keystone XL Pipeline.
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