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.
Interstate Commissions: Pennsylvania State Senators
Intervene in Hydraulic Fracturing Moratorium Case
On September 17, 2018, the U.S. District Court for the
Middle District of Pennsylvania granted a motion from three Pennsylvania state
senators to
intervene in the ongoing case against the Delaware River Basin
Commission’s (DRBC) moratorium
against hydraulic fracturing (Wayne Land and Mineral Group LLC v. Delaware
River Basin Commission, No. 13:16-cv-00897-RDM). The case was
brought by Wayne Land and Mineral Group, LLC (Wayne), seeking a declaratory
judgment that DRBC does not have the authority to impose a moratorium on hydraulic
fracturing activities within the Basin. In 2017, the U.S. District Court
for the Middle District of Pennsylvania found
that the term “projects,” which the DRBC is given jurisdiction over, is
unambiguous and includes the practice of hydraulic fracturing. The U.S. Court
of Appeals for the Third Circuit disagreed, and in July 2018, the court vacated
the dismissal and remanded
the case. The senators now seek to support Wayne in its ongoing challenge,
claiming that DRBC has overstepped its authority in issuing the moratorium.
Crude Oil by Rail: Department of Transportation Rescinds
Crude Oil Rail Requirements
On September 24, 2018, the Pipeline and Hazardous Materials
Safety Administration, an agency within the Department of Transportation, announced
that it would be removing certain federal requirements for the transportation
of crude oil by rail. Specifically, the agency will no longer require that
trains transporting crude oil be equipped with electronically controlled
pneumatic brakes. The agency has determined that the costs associated with this
technology do not provide economically justifiable benefits.
Methane Emissions: Oil and Gas Companies Commit to
Significant Methane Reductions
On September 24, 2018, the Oil & Gas Climate Initiative announced
that its participating companies will reduce methane emissions from their oil
and gas operations by 2025. The Oil & Gas Climate Initiative
(OGC) is an organization of oil and gas companies that are voluntarily working
to develop policy and strategies to lower methane emissions for upstream and downstream
operations. OGC set a target of a one-fifth reduction in overall
emissions and an ultimate goal of a one-third reduction. OGC includes several
major companies in the industry, including Chevron, BP, Petrobras, and Exxon
Mobil.
Pipelines: State Department Releases Draft Environmental
Impact Statement for Keystone XL Alternative Route
On September 24, 2018, the U.S. Department of State
(Department) announced
the availability of public review and comment for the Draft
Supplemental Environmental Impact Statement for the Keystone XL Mainline
Alternative Route. The Keystone XL pipeline, operated by
TransCanada, is designed to deliver oil from Hardisty, Alberta to Steele
City, Nebraska. In November 2017, the Nebraska Public Service Commission
denied TransCanada’s application for the preferred pipeline route but approved
the Mainline Alternative route. On August 15, 2018, the U.S. District
Court for the District of Montana ordered the State Department to analyze the
potential environmental impacts of the Mainline Alternative Route (MAR).
In the draft Environmental Impact Statement (EIS), Department analyzed
the potential direct, indirect, and cumulative impacts related to the MAR. According to the draft EIS, potential impacts
from the MAR “are not likely to be significant.” Public
comments on the draft EIS will be accepted until October 9, 2018.
Federal Lands: Federal Judge Reinstates Leasing Rules in
Sage Grouse Areas
On September 21, 2018, the U.S. District Court for the
District of Idaho issued an opinion
granting a preliminary injunction that requires the U.S. Bureau of Land
Management (BLM) to reinstate rules intended to protect the greater sage grouse
(Western Watersheds Project et al v. Zinke et al, No. 1:2018cv00187).
BLM had changed the rules in January to shorten the time in which formal
protests against oil and gas leases in sage grouse areas could be filed.
BLM also made the public comment period for such leases optional. The injunction only applies to
federally-recognized greater sage grouse habitat management areas.
According to the court, the injunction will allow more opportunity for
public involvement and comment which will remedy any potential harm that could
be caused by the rule change.
Methane Migration: University of Texas Study Finds No
Link Between Hydraulic Fracturing and Methane in Groundwater
On September 24, 2018, researchers from the University of
Texas announced
the completion of a study
on methane present in groundwater. The study, published in Water
Resources Research, examined the chemical composition of methane from
shallow groundwater wells located above the Barnett Shale. The wells with
higher methane levels, the study concluded, had been contaminated by methane
migrating up from deeper rock formations, not from nearby hydraulic fracturing
activities. Additionally, the study looked at several hundred other water wells
in the area and found little or no methane contamination (Monitoring
Stray Natural Gas in Ground water with Dissolved Nitrogen. An Example from
Parker County, Texas).
From the National Oil & Gas Law Experts:
Charles Sartain, Landmen,
Ohio Has a Surprise for You, Gray Reed (October 1, 2018)
John McFarland, News
from the Railroad Commission, Oil and Gas Lawyer Blog (October
1, 2018)
Pennsylvania Legislation
HB
2154: first consideration (September 25, 2018) act relating to
conventional wells & the development of oil, gas, and coal
SR
214: reported as committed (September 25, 2018) a resolution urging PA
natural gas producers to export natural gas to Europe
SR
104 (laid on the table): resolution urging the Governor to end the
moratorium on new nonsurface disturbance natural gas drilling leases in state
forest land (September 25, 2018)
Pennsylvania Notices
Public
Hearing: regarding application from Penneco to authorize oil and gas
waste disposal in Allegheny County (October 1, 2018)
(September 28, 2018) First round of grants announced
for Driving PA Forward initiative. Funding will be used to improve air
quality through six transportation projects.
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive
ShaleLaw HotLinks:
"Hackers
Eye US Oil, Gas Infrastructure" - Hart Energy
"Researchers:
'No Link' between Fracking And Methane in North Texas Groundwater"
- Houston Public Media
"Demand
for fracking sand hits record levels" - Shale Gas Reporter
"OPEC:
U.S. Shale Will Peak in Mid-2025" - Oil and Gas 360
"Don’t
frack so close to me: Colorado voters will weigh in on drilling distances from
homes and schools" - The Conversation
Connect with us on Facebook! Every week
we will post the CASL Ledger which details all our publications and activities
from the week.
This week we published one new Shale Law in the Spotlight
article: Shale
Law in the Spotlight – Overview of Recent Amendments to the EPA Methane
Emissions Rule
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Check the September
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