Brennan Weintraub - Research Assistant
Jackie Schweichler - Staff Attorney
The following information is an update of recent local,
state, national, and international legal developments relevant to shale gas.
State Regulation: Colorado Proposition for Increased Oil
& Gas Setbacks Fails
On November 6, 2018, the voters of Colorado rejected Proposition
112 which, if adopted, would have required that all new oil and gas
drilling operations in the state be at least 2,500 feet away from all occupied
structures and vulnerable areas. Vulnerable areas, according to the text of the
measure, included public parks, playgrounds, sources of drinking water, and
other water bodies across the state. The initiative ultimately failed
by roughly twelve points, despite an October poll
that found 52% support for the measure.
Pipelines: West Virginia’s Rover Pipeline Has Been
Completed
On November 1, 2018, the Federal Energy Regulatory
Commission granted
Energy Transfer LP permission to put into service the final two segments of its
Rover Pipeline project in West Virginia. With the approval of the Sherwood and
CGT Laterals, as well as a compressor station and two metering stations, the entire
713-mile natural gas pipeline
is now fully operational. The Rover Pipeline will transport roughly 3.25
billion cubic feet of natural gas per day from the Marcellus and Utica Shales
to northern Ohio and Michigan for distribution. The pipeline is also connected
to the company’s storage hub in Ontario, where natural gas is stored for later
distribution to North American markets.
LNG Exports: DOE Approves Short-Term LNG Exports from
Corpus Christi
On November 1, 2018, the U.S. Department of Energy issued an
order
expanding export authorization for the Corpus Christi Liquefaction Project
(Corpus Christi). The Department of Energy previously granted Corpus
Christi short-term authorization on September 28, 2018, to export liquefied
natural gas (LNG) to countries with which the U.S. has a free trade agreement
(FTA). The recent order will allow Corpus Christi to also export to
non-FTA countries so long as trade with that country is not prohibited by U.S.
law or policy. The order provides for a
two-year period beginning either on December 31, 2018, or the date of the
Project’s first export - whichever comes first. Additionally, Corpus
Christi is limited to exporting 767 Bcf of natural gas to FTA countries and 767
Bcf to non-FTA countries in a twelve-month period.
GHG Emissions: Washington State Voters Reject Proposed
Carbon Fee
On November 6, 2018, voters in the state of Washington voted
down Initiative
1631 by roughly a thirteen-point margin. The measure proposed to institute
fees on large emitters of greenhouse gas pollutants such as carbon dioxide,
methane, nitrous oxide, hydrofluorocarbons, and other gases. The fee
would have been based on the carbon content in the released fossil fuels and
would have been collected from natural gas public utilities or entities. Proceeds from these fees were to have been
used to promote green energy sources and address the impacts of climate change.
The Washington Office of Financial Management estimated
that the measure would have raised roughly 2.3 billion dollars during the first
five fiscal years after adoption. The program would have also set aside
$50 million for a program to support workers transitioning from fossil fuel
work.
Pipelines: Fourth Circuit Stays Atlantic Coast Pipeline’s
Water-Crossing Permit
On November 7, 2018, the United States Court of Appeals for
the Fourth Circuit granted
a motion to stay the water-crossing permit for the Atlantic Coast Pipeline in
West Virginia. The West Virginia Department of Environmental Protection requires
that stream crossings must be completed within 72 hours and that any structures
built cannot impede the ability of fish to swim in the stream. Sierra Club, one
of the plaintiffs, said in a press
release that the project’s plans involve temporarily damming the Greenbrier
River for three days, which would make it impossible for fish to navigate the
river.
From the National Oil & Gas Law Experts:
George Bibikos, At
the Well Weekly, (November 11, 2018)
Charles Sartain, Asserting
a Losing Title Claim Isn't (Always) Tortious, Gray Reed (November 7,
2018)
John McFarland, Seeligson
v. Devon - Plaintiffs (Almost) Get Class Certification, Oil and
Gas Lawyer Blog (November 7, 2018)
Pennsylvania Notices
DEP
Grants: $2.6 million in funding to municipalities and businesses for 16
clean energy vehicle projects for air quality and public health (November
8, 2018)
DEP
Grants: $610,000 in funding granted to school districts for clean energy
vehicle projects (November 9, 2018)
Public
Hearings regarding: Air Quality Plan Approvals for Proposed Compressor
Stations in Delaware, Bucks Counties (December 4, 2018)
Meeting
Cancellation: Environmental Quality Board meeting for November 13, 2018
is cancelled. The next meeting is scheduled for December 18, 2018.
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive
ShaleLaw HotLinks:
“Net
exporter status could be in America’s future” - Hart Energy
“Tax
revenues improve thanks to drilling, but full recovery still distant” -
Minneapolis Star Tribune
“Sweet
success in the Eagle Ford” - Hart Energy
“Okla.
driller stops frack job after earthquake” - Energywire
“Gas-fired
power projects to boost Appalachia gas demand” - Shale Gas Reporter
“Public
hearing set for Tuesday on oil conditioning regulations” - The Bismarck
Tribune
“Cabot
Oil & Gas expects Marcellus production jump in 2019” - Shale Gas Reporter
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: Ohio
Supreme Court Denies Ballot Proposition to Prohibit Oil and Gas Extraction
Within the City of Columbus.
Want to get updates, but prefer to listen? Check out the Shale Law Podcast! We
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Check the November Agricultural Law Brief! Each month we compile the biggest legal
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