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.
Pipelines: FERC Approves Gateway Expansion Project
On December 12, 2018, the Federal Energy Regulatory
Commission issued an order
authorizing the construction of the Gateway Expansion Project by Williams. The project,
an expansion of an existing natural gas pipeline servicing the northeastern
United States, is expected to provide an additional 65,000 dekatherms of
natural gas per day to customers in New York and New Jersey. Williams plans to
complete the expansion by winter 2020/2021.
Pipelines: Federal Appeals Court Upholds Ruling for
Dakota Access Pipeline
On December 13, 2018, the U.S. Court of Appeals for the
Eighth Circuit issued an opinion
upholding the ruling of a federal district court regarding a dispute between a
group of landowners and Dakota Access, LLC. The landowners allege that Dakota
Access, LLC induced them to sign easements for the Dakota Access Pipeline by
use of threat, misrepresentation, deception, fraud, and other tactics.
According to the district court, the allegations constituted a claim for
fraud and as such, required a heightened pleading standard. The district court dismissed their claims,
holding that this standard was not met and in the present opinion, the Court of
Appeals affirmed.
LNG Exports: Department of Energy Alters LNG Export
Reporting Requirements
On December 19, 2018, the U.S. Department of Energy issued a
policy
statement indicating its intention to alter existing LNG export reporting
requirements. Specifically, the Department will seek to change a policy adopted
in 2016 requiring exporters to report the country where the product will be
received for “end use” when seeking authorization for exports. The new policy
will require exporters only to report the country or countries where the
natural gas will be delivered from the United States.
Pipelines: Michigan Panel Gives Final Approval to Line 5
Pipeline
On December 19, 2018, the Mackinac Straits Corridor
Authority gave its final approval
for Enbridge Energy to build a utility tunnel that will house the proposed Line
5 natural gas pipeline. The utility tunnel will be constructed beneath
the Straits of
Mackinac, a channel that connects Lakes Huron and Michigan. When the
new pipeline
is completed, Enbridge will deactivate the existing pipelines at the Straits.
The new Line 5 will be housed inside of a utility tunnel roughly 100 feet
below the lake bed, which Enbridge says will protect the aquatic environment
and prevent potential accidents, like anchor strikes, from damaging the
pipeline.
Pipelines: Pennsylvania DEP Approves Permits for Falcon
Ethane Pipeline
On December 20, 2018, the Pennsylvania Department of
Environmental Protection (DEP) announced
the approval of permits for the Falcon ethane pipeline project. The
approved permits include Chapter 105, Water Obstruction and Encroachment Permits
and Chapter 102, Erosion and Sediment Control Permit. The
Falcon project is a 97-mile ethane pipeline built and operated by Shell
Pipeline Company LP. The pipeline will connect Houston, Pennsylvania;
Scio, Ohio; and Cadiz, Ohio.
Pipelines: Chester County District Attorney Announces
Criminal Investigation of Mariner East Pipeline
On December 19, 2018, Chester County District Attorney Tom
Hogan issued a press
release detailing his office’s intention to begin a criminal investigation
into Energy Transfer LP and Sunoco Logistics Partners. The office will
investigate issues relating to the construction of the Mariner East 1, 2, and
2X pipelines. The District Attorney
alleges that the pipeline construction is responsible for well water contamination
and sinkholes in Chester County. The office is considering a number of
potential charges against the company, including causing or risking a
catastrophe and criminal mischief. The
Mariner East 1 pipeline has been used to transport refined petroleum to western
parts of the state. The new Mariner East project would reverse the flow
of the Mariner East 1 and use it, along with the 2 and 2X pipelines, to
transport natural gas to eastern Pennsylvania.
Production and Operation: Amount of Recoverable Natural
Gas Expected to Rise in Future Shale Wells
On December 17, 2018, the University of Texas at Austin
published a study with
a production outlook model used to better assess the amount of economically
recoverable natural gas. The study, which looked at the Barnett,
Haynesville, Fayetteville, and Marcellus Shales, found an overall increase of
nearly twenty-five percent in technical recoverability, largely brought on by
technical advances like stacked and staggered well drilling.
Additionally, the study found that improvements in geologic
characterization and a favorable market have contributed to the increase. The study is entitled Update and Enhancement of
Shale Gas Outlooks and was prepared for the U.S. Department of Energy
Office of Scientific and Technical Information.
From the National Oil & Gas Law Experts:
George Bibikos, At
the Well Weekly, (January 2, 2019)
Ryan Steele, State
Legislature Exempts Oil and Gas Landmen from Real Estate License Requirements,
Oil & Gas Law Report (December 20, 2018)
John McFarland, Takeaway
Capacity in the Permian and Reflections on Judicial Elections in Light of
Murphy v. Adams, Oil and Gas Lawyer Blog (December 27, 2018)
Follow us on Twitter at PSU Ag & Shale Law (@AgShaleLaw) to receive
ShaleLaw HotLinks:
“Protestors
outnumber bidders at some lease sites” - Energywire
“New
governor seeks ‘way to monetize our gas’” - Energywire
“Exxon
becomes Permian drill chief” - Rigzone
“Can
Houston keep its title as world’s energy capital?” - Houston Chronicle
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 a new Shale Law in the Spotlight
article: U.S.
EPA and Army Corps of Engineers Issue Proposed Revised Definition of “Waters of
the United States
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