Written by:
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.
GHG Emissions: Report Examines Emissions from Drilling on
Public Lands
On November 23, 2018, the United States Geological Survey
issued a report
finding that 24 percent of greenhouse gas emissions in the nation are caused by
drilling on federal lands and offshore areas. The agency found that Wyoming,
New Mexico, Louisiana, and Colorado contributed the majority of CO2 emissions
on federal lands in 2014. Wyoming emissions alone comprised 57 percent of the
total emissions from drilling on federal lands. Additionally, the report found
that overall greenhouse gas emissions from oil, gas, and coal mining on these
lands dropped between 2005 and 2014. The researchers collected data from
the Office of Natural Resources Revenue, the Mine Safety and Health
Administration, the Environmental Protection Agency, and the Energy Information
Administration.
Pipelines: Army Corps of Engineers Suspends
River-Crossing Permit for Atlantic Coast Pipeline
On November 20, 2018, three district offices of the U.S.
Army Corps of Engineers in Pittsburgh,
Pennsylvania; Norfolk,
Virginia; and Wilmington,
North Carolina sent letters to Atlantic Coast Pipeline, LLC informing them
of the Corps’ decision to suspend the pipeline’s authorization to cross rivers
and streams in those states. This decision follows a November 7 order
from the U.S. Court of Appeals for the Fourth Circuit that suspended a water
crossing permit in West Virginia. Another recent court order
on November 20 from the U.S. District Court for the Eastern District Court of
North Carolina prevented Atlantic Coast from accessing a farm in Nash County.
The pipeline,
once completed, will run six hundred miles from West Virginia to North Carolina
and will carry natural gas from the Marcellus Shale.
Trespass by Fracture: Pennsylvania Supreme Court Agrees
to Consider Whether Rule of Capture Applies to Hydraulic Fracturing
On November 20, 2018, the Pennsylvania Supreme Court issued
an order
granting a petition for allowance of appeal in order to determine whether the
rule of capture applies to oil and gas produced by wells that used hydraulic
fracturing (Briggs v. Southwestern Energy Production Company, No.
443 MAL 2018). In April 2018, the Pennsylvania Superior Court opined
that the rule of capture did not apply to prevent trespass liability from hydraulic
fracturing operations. According to the Superior Court, the rule of
capture is “[a] fundamental principle of oil and gas law holding that there is
no liability for drainage of oil and gas from under the lands of another so
long as there has been no trespass and all relevant statutes and regulations
have been observed.” That court held that, because the rule of capture
typically applies to oil and gas which is able to migrate within the reservoir
and across property lines, it should not apply to the non-migratory oil and gas
which is found in shale formations.
International Development: Western Australia Announces
New Rules for Hydraulic Fracturing
On November 27, 2018, the government of Western Australia announced
that it will lift the hydraulic fracturing moratorium for existing petroleum
titles, following the finding of low risk by an independent scientific inquiry.
The practice will continue to be banned in roughly 98% of the state and
royalties collected will be used to fund new renewable energy projects. The government will also allow landowners to
make the decision to prohibit oil and gas companies from using hydraulic
fracturing on their land. Additionally, the state has agreed to create
two-kilometer buffer zones around sources of public drinking water and
residential areas in which no development will take place.
Water Quality: Penn State Study Examines Methane
Migration Near Shale Gas Wells
On November 19, 2018, the Proceedings for the National
Academy of Science published a study
considering new methods of detecting methane contamination in wells located
near hydraulic fracturing sites. The study region focused on a portion of
the Marcellus Shale located in Hughesville, Pennsylvania. The researchers were able to identify
chemicals that can indicate whether methane migration resulted from shale gas
development or was preexisting. The study found that methane
concentrations were higher in nearby wells after gas development had taken
place and that contamination increased at points where the shale formation was
relatively shallow and had been highly fractured. It also considered several
wells that had previously been cited for leaks and found that, seven years
later, methane concentrations are still significantly elevated. The title of
the study is Detecting and Explaining Why Aquifers Occasionally Become
Degraded Near Hydraulically Fractured Shale Gas Wells. The team of
researchers included members of Penn
State’s Department of Geosciences.
From the National Oil & Gas Law Experts:
George Bibikos,
At the Well Weekly, (November 30, 2018)
Charles Sartain, Texas
High Court Invokes the Discovery Rule, Energy and the Law (November 27, 2018)
John McFarland, Murphy
v. Adams - What is an "Offset Well"?, Oil and Gas
Lawyer Blog (December 3, 2018)
Dena Adler, Climactic
Recent Weeks for International Climate Change Litigation, Climate
Law Blog (December 3, 2018)
Pennsylvania Notices
Location
Change for Public Hearings regarding: Air Quality Plan Approvals for
Proposed Compressor Stations in Delaware, Bucks Counties (December 4, 2018)
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive
ShaleLaw HotLinks:
"U.S.
could become net exporter of petroleum by 2022" San Antonio
Express-News
"Eminent
domain trial on Bayou Bridge pipeline begins with assertion that land worth
only $1.11" - The Advocate Mag
"Canada’s
Oil Output Is Growing Despite Its Pipeline Problems" - Oil &
Gas 360
"Penn
State scientists examine ground water to determine shale impact" -
Shale Gas Reporter
"Explaining
Natural Gas Price Fluctuations" - Breaking Energy
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we will post the CASL Ledger which details all our publications and activities
from the week.
This week we published a new Shale Law in the Spotlight
article: PHMSA
Amends Regulatory Requirements for Crude Oil Trains
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